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

To: The Phoenix who wrote (51655)	8/5/1998 9:23:00 AM
From: Narotham Reddy	Respond to of 61433

It's Abby Cohen Vs Ralph Acampora The comment of this influential lady at Goldman Sachs has helped the market many a times previously, while Ralph's predictions remained short lived. They will continue to negate each other regardless. Anyway, as her comments crossed the wire, the Futures zoomed. Narotham Briefing: Goldman Sach's Abbey Joseph-Cohen: according to CNBC, the Goldman Sach's strategist feels that the market is near the bottom of the trading range; does not see any wage inflation and thinks investors should look for companies that have already fully adjusted to the woes in Asia; Ms. Cohen would also be attracted to tech stocks, assuming they have already adjusted to their specific problems; Ms Cohen maintains S&P 500 target of 1250.....

To: The Phoenix who wrote (51655)	8/5/1998 10:05:00 AM
From: Souze	Read Replies (1) \| Respond to of 61433

Gary, Thanks for the response. I would like to roughly address your points to encourage a discussion. If the Cisco $1.26 'net income per share' is comparable to Ascend's projected (5 months hence) $1.20, then: PE, Using yesterdays closing prices Cisco $93.125/1.26=73.91, and Ascend 47.688/1.20=39.74. To me, this is a big imbalance even taking into account the 5 month window. Earnings and revenue growth at both companies are strong. 'Haven't done my homework by checking the numbers, so I don't know who has the edge here. Stability. Have to give that one to Cisco, given Ascend's '97 performance. Future earnings/revenue growth potential. That's the biggie and is also up in the air. But given Ascend's WAN emphasis and the high margins in that area, I'd give the edge to Ascend. Take over premium. Surely Ascend's share price should benefit here. There are lots of other factors, e.g. brand recognition, that go into share price. And each item has different weights. My point is that, from my admittedly weakly grounded technical view, it appears that that ASND is fundamentally a much better value than CSCO at today's prices. Comments? Souze