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

To: michael modeme who wrote (55598)	10/8/1998 11:39:00 PM
From: gbh	Respond to of 61433

If the growth is there then the valuations will follow, period. Yes, but stocks like DELL, MSFT, CSCO and ASND were being priced at their growth rate 2 or more years out. That represents too much risk in this market. So these guys are all being shaved to prices that are representative of growth rates 12 months or less out. So even though fundamental haven't changed (yet), the price reduction is still justified for the level of risk investors are willing to take. 3 months ago people didn't twice about paying 65x for MSFT, even though they are only growing at 20-25%. Times have now changed. Gary