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

To: Dennis R. Duke who wrote (42776)	4/8/1998 9:27:00 AM
From: Lutz Moeller	Read Replies (4) \| Respond to of 61433

from briefing.com Ascend develops, manufactures and sells wide area networking solutions to the telecommunications carriers, Internet service providers and corporate customers worldwide. Earnings Alert Company is due to report earnings after tomorrow's close... Street expects ASND to post a gain of $0.25, well above last year's loss of $0.87 and in line with the previous quarter... Would end a streak of 4 quarters of year-over-year declines. Stock has run up in recent weeks in anticipation of a decent number... But banking on a positive surprise out of Ascend is a dangerous game, as company disappointed the street by 33.3% and 35.5% in the two most recent quarters... Very competitive industry conditions and disappointing results/pre-announcements from CS, BAY and COMS suggest that another negative surprise could be in order. In fact, unless company reports a blow out number, we see little chance for a sustained rally on its report (even if it narrowly exceeds estimate), as year-to-date gain of 51% has stock trading at Cisco-like valuations... P/S ratio of 6.1 far exceeds industry average as does estimated p/e of 31x. Heading into the report, Briefing contends that the potential downside risk in ASND outweighs the possible upside reward... Support is in the 33-31 range, with resistance at 40. Lutz