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

To: Sowbug who wrote (36230)	2/24/1998 12:51:00 PM
From: Greg h2o	Read Replies (2) \| Respond to of 61433

Sowbug...No, I haven't read Livingston's book. I would like to debate your assertion that ASND was a riskier buy at 23 than it is currently at 36. Just because it has a little momentum behind it and a few good news releases does not make it any less of a risk. I'd argue just the opposite. We've recently seen ASND drop to 23. What makes you think it can't move right back down to that level on a few BAD news stories? As I said, I purchased ASND twice...once when I thought it was fundamentally undervalued at 32, and another when it was ridiculously undervalued at 23. If it moved to 15 after 23, I would have added to my position--given nothing significant changed in the fundamental reason I purchased ASND at 32 and 23. This is a quality company with basically no debt, good management (who has a stake in its success) and what can be perceived as high quality products in a growth industry. That didn't change at 23 and wouldn't have at 15. <<If you have a fundamental faith in the strength of the company, then go ahead and back up the truck on dips, but Tim's strategy doesn't even require him to know anything about the company.>> How on God's green earth can anyone buy a stock they know nothing about??? That, to me, is about the most ridiculous way to invest that I can conceive! I know there are traders out there that do it and some who even make money at it. But, I just think it would be much more exciting to take that money and go to Vegas and play craps. Besides, at least you get free drinks that way! I'm not going to hypothesize as to whether Tim invests knowing absolutely nothing about ASND. I actually believe he probably has a better knowledge of the fundamentals of ASND than the average investor. If he chooses to ignore them....well, he can suffer the consequences. Ask Gary Pilgrim about how well momentum investing can work....let me see...he was selling ASND at 23...he lost his shirt, and further his investors' shirts. I'll stick to buying on fundamentals and selling on the same. It ceases to amaze me how fundamentally overvalued a stock can get (ASND at 80+) and conversely how undervalued the same stock can become in a 12 month time period (ASND at 23). Rational market? NOT. regards, greg