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

To: Thomas M. who wrote (56278)	10/20/1998 10:19:00 PM
From: gbh	Read Replies (2) \| Respond to of 61433

Tom, the analysts who downgraded both mentioned a forward PE of 30 as being tough to attain. I take it this means they feel the stock is overpriced today at 48 (30 x 1.60). Not saying I agree with them, but just that I can understand their concern. Also, its useless comparing ASND to CSCO. CSCO commands a MSFT or DELL like premium because they are the big dawg. We can talk all we want here about how CSCO's business going forward will shrink, but until it happens (which it probably won't), they will get the benefit of the doubt. But even CSCO was rocked by that downgrade a week or so ago. Took the stock to 40 and change, but they bounced back. ASND may well bounce back too, but they just won't receive the same respect as CSCO. I guess that gives us all a chance to be smarter than the analysts. Gary