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

To: Bindusagar Reddy who wrote (49199)	6/22/1998 10:15:00 PM
From: hitesh puri	Read Replies (1) \| Respond to of 61433

True, that the upside to ASND is limited and that is in view of the earnings that are projected as of today for 1999 ($1.45) and ASND at $50 was trading at 35x that estimate. That is pretty much in line with their growth rate (actually that is more since management after the flogging last year keeps on saying 20%). So the question is should ASND trade higher and if the downgrade was bogus ? I tend to go with the analyst in this case as $1.45 is a good estimate and if a buyout happens then that could be at 8-9 times sales which yields a price of 55-56. That too cannot happen till October (keeping in mind Lucent which is the major speculation). So again thats an upside of 10% for the next 3 months. As I said in my previous posts Investors (or Anal-cysts) see better places to put money for the next 6-12 months, say the crumbled semis or PC stocks. Its a question of returns and if an analyst had the guts he would do that to Cisco too as it too has a limited upside from these levels till it corrects 10-15%. -hitesh

To: Bindusagar Reddy who wrote (49199)	6/22/1998 11:11:00 PM
From: Gary Wisdom	Respond to of 61433

IMHO, the day Ascend had today had 90% to do with the Solomon sale (on behalf of its clients of ASND, DIS, and CPQ as noted before), 8% to do with Montgomery downgrade, and 2% profit taking. When someone's dumping 18MM shares of stock, it is only natural for the price to go down. Disney went down in the morning but rebounded. Perhaps there was more Ascend stock for sale than Disney. After all, Ascend did temporarily rebound from $47 1/4, all the way back to $48 5/8, before slipping back some. Such is life.