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Technology Stocks : DSC Communications -- Ignore unavailable to you. Want to Upgrade?

To: Dave Chanoux who wrote (3859)	3/20/1998 8:23:00 PM
From: Yeadon	Read Replies (4) \| Respond to of 4429

This is the worst yet. From Yahoo on DLJ lowering estimates--likely reason stock had such high volume on downside. If Nasdaq ever has a few big down days in a row, we will be at 15. But likely NASDAQ will be up Monday. What ever happened to those big contracts that were supposed to help in 1998? Yeadon "DLJ says this is a dog stock: > DSC appears to be facing too many uphill battles in the > first, and probably second quarters of 1998 to reach our > and census earnings expectations. These hurdles include > difficult year over year RBOC comparisons, customer > consolidations, dilution from the acquisition of > Celcore, a struggling cellular switching customer and > the whim of product mix. As a result we are lowering our > first quarter estimate by $0.09 per share and second > quarter earnings by a like amount and our full year 1998 > estimate from $1.28 to $1.10. These adjustments trickle > down to a more modest cut in our 1999 number from $1.75 > to $1.60. We feel more confident in the second half 1998 > numbers, which should see the alleviation or reversal of > several of these factors, and note the shares are > currently selling at their lowest PE on forward earnings > since 1989. Long term investors may be tempted but the > risk of additional first half cuts continues to make us > reluctant to balk from our Market Performance rating. "