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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Sector Investor who wrote (30169)	1/13/1998 12:00:00 PM
From: HEXonX	Read Replies (3) \| Respond to of 61433

>> SSB gives a 12 month price target of $35 [had to spoil it didn't they?], based on a PE of 25. << Sector, they have no clue and don't want to look foolish again so I bet this is a low ball estimate. HEX

To: Sector Investor who wrote (30169)	1/13/1998 12:06:00 PM
From: Gary Korn	Respond to of 61433

Sector, thanks for the SSB synopsis. A couple of points: SSB indicates they are confident that ASND will show sequential revenue and earnings growth in FY Q1 1998. and that sizable core switching orders from AT&T, Worldcom, Williams and NTT are all FY Q1 events which should offset anticipated Asian weakness, and should enable the company to meet the consensus FY Q1 estimate of $0.24. [this is still very conservative, IMO] Indeed, Ashby identified an analyst estimate of $0.25/share for 1Q98 when he was in Scottsdale and indicated that ASND would meet that number yet save everything else for greater visibility going forward. Also, ASND's 15-20% projection certainly "anticipates" Asian weakness, as ASND has assumed zero percent revenue growth in 1998 from non-Japan Asia. In Q2 SSB expects ASND to introduce the TNT II during May-June timeframe for commercial shipments. The next generation TNT will offer large telco customers a truly industrial strength access platform with higher port density, increased redundancy and an enhanced software platform. This is the new TNT that will be vented from bottom to side to back to top (unlike the current model, which just vents from left to right). Gary Korn