Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: garrick le who wrote (52666)	8/24/1998 12:14:00 PM
From: Paul Shread	Read Replies (1) \| Respond to of 61433

CSCO and LU deserve a premium; COMS is another buyout candidate whose earnings picture has improved just enough to give the Street hope. ASND is growing at 15% this year, 37% next; that's a two-year everage of 26%. Long-term, analysts are calling for 30% growth. They're dreaming, but let's assume they're right: this company should trade at a PE of 30, and based on 1998 earnings, that makes this a $36 stock. All else is a buyout premium. Besides, judging from the similarities to CLST, this company is more than likely to face an SEC inquiry into Mory's -- how shall we say -- overly optimistic statements of last summer. Short of a buyout, this company ain't worth what you're paying for it, so you better hope LU comes through.