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

To: Daniel W. Koehler who wrote (30756)	1/16/1998 12:56:00 PM
From: Gary Korn	Read Replies (3) \| Respond to of 61433

Expect a gap up opening next week and test of resistance at 32. An earnings surprise could take us to 35 + Daniel, I would not be surprised if the first sentence above happened on Tuesday. I'm troubled by the second, i.e., the concept of an earnings surprise. I only say that because I heard Ashby to say that he is not interested in a big upside surprise. Rather, the company is doing this: (1) carefully guiding analysts to a narrow range, (2) target the (reasonable) high end of that range, but no more and (3) save the rest for visibility going forward. (This simply is a different company than it was 1 year ago in terms of its dealings with the Street...much more like an IBM.) The above being the case, you may see a positive in terms of DSO and a good revenue number. Still, there likely will be no "blow-out" and management likely will continue its new conservative tone in the CC. This, I think, will limit stock price exuberance to some degree. All of this is very good long term, but requires some degree of patience short term (a reason to be careful with Call buying on this stock) (i.e., the beta remains high but management is now more conservative...tell this to Fidelity, which unnecessarily requires a high margin level on this issue). Gary Korn