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

To: Jeff Jordan who wrote (31647)	1/22/1998 11:02:00 AM
From: Tim Luke	Respond to of 61433

<its not clinton its the asian markets> Maybe both!

To: Jeff Jordan who wrote (31647)	1/22/1998 11:02:00 AM
From: Fran	Read Replies (1) \| Respond to of 61433

I would have to agree with you. I don't see any corelation between Clinton's behavior and the market. Asia on the other hand is an obvious influence, but I thought things were improving over there. I realize it will take time to bring the market back up, but I would have thought the downward trend would settle for a month or so. I guess the earning reports are coming in low because of Asia which is influencing the market. Still learning and always will be.

To: Jeff Jordan who wrote (31647)	1/22/1998 11:08:00 AM
From: Gary Korn	Read Replies (2) \| Respond to of 61433

ASND's current market cap of $5.8B is 5 times 1997 sales of $1.167B Given what I believe are conservative 1998 sales of about $1.4B, for the stock to stay at 29 through December would require a 20% compression of its market cap to sales (i.e., a reduction in market cap of from 5 times sales down to 4 times sales). It doesn't make sense to me that that would happen. For the 5x sales figure to hold ASND would have to trade at about 35 by year end. (Isn't that the SSB target?). Among many other reasons, compression doesn't make sense if only because (1) ATM growth, from which ASND profits, is very strong and (2) xDSL growth, from which ASND directly and indirectly profits, has been hyped so much in the last few days (witness PAIR). Gary Korn