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

To: Inga who wrote (31654)	1/22/1998 11:22:00 AM
From: JZGalt	Respond to of 61433

<This ratio suggests that ASND is overvalued.> Lanny, I think you should take a look at the presumptions behind what goes into Vector Vest analysis. The growth rate (GRT) and Growth to p/e ratio (GPE, otherwise known as PEG) is based upon the current projections of analysts. In the current enviornment where the analysts have run away from ASND, these projections are lower than they were in the middle of the summer. If/when ASND regains the confidence of the analysts, I think you will see these numbers expand and consequently the "Value" will expand. It's great to fool with numbers and projected "Value", but these sorts of screens will _never_ pick up a _change_ in expectations until after teh stock has risen considerably. These sorts of screens are useful for selecting stocks that are smashed along with a group of like stocks for no apparent reason of their own. BTW, try MRVC. "Value" of $45 and pulled down with the rest of the group. I've more money in MRVC than ASND and I believe MRVC is a better buy at this point, but ASND isn't "overvalued" at these levels. ;-) ---- Dave

To: Inga who wrote (31654)	2/11/1998 5:11:00 AM
From: Inga	Read Replies (2) \| Respond to of 61433

From a pure TA perspective, a vertical price move occurred on 02/05 accompanied by large volume (13 MM). ASND chart then forms a typical (rectangular) flag in the next 3 trading days (02/06,09,10). This is extremely BULLISH. If TA works in this case, there should be another vertical price move, possible gap-up, occurring with heavy volume soon (maybe within a few days when breaking 35 on the upside). From 1997 historical data, ASND seems to move 15-20 points within 2 months on average. Bottom price range of 25-30 occurred in December-January so hopefully the price target of 40-45 is achievable by end of March. BTW, for those of you who read DeMark TA, does he mention anything about flag, wedge, pennant interpretation? Just my 2 cents.