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

To: garrick le who wrote (52652)	8/24/1998 11:28:00 AM
From: Paul Shread	Read Replies (1) \| Respond to of 61433

That's one-year growth of 37% after a year or so of going nowhere. The networking sector is growing at 25% or so, and given that ASND fared no better than anyone else in surviving the networking bear market, I don't see why they should command a premium to that growth rate. Besides, the rules are changing, and if ASND couldn't beat CSCO when the field was a lot smaller, there's no way they're going to beat LU and NT. Besides, as ASND hasn't hit analysts' overly-optimistic long-term growth rates in the past, why should they do so now? Given its checkered recent history, this stock merits some skepticism, wouldn't you say? And paying for earnings more than a year down the road is not the way to do it; this company trades at a PE of 27 based on the most optimistic 1999 earnings estimates, and we all know what's been happening to earnings estimates lately...