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

To: Tim Luke who wrote (58569)	1/10/1999 11:44:00 PM
From: STEVE	Respond to of 61433

Congrats to all ASNDants. So where do we go from here?? This week, 3mths, 6mths, one year? Any opinions?? I loved This stock on it's own merits. Been in it for over 18 mths and suffered through the slide. Now I'm pondering as to the best strategy. Steve

To: Tim Luke who wrote (58569)	1/10/1999 11:49:00 PM
From: FUZFO	Read Replies (1) \| Respond to of 61433

WOW LU is finally going to do it! Its been a long time coming. Congrats to all you guys, I bailed way too early on this one. Fuz

To: Tim Luke who wrote (58569)	1/11/1999 12:29:00 AM
From: Bharath Rangarajan	Read Replies (2) \| Respond to of 61433

I hope that the buyout price is higher than $85. From a valuation point of view, ASND seems more reasonable than the other large networking stocks. ASND's projected EPS for 99, is $1.66. Their growth rate is 41%, so at 1x growth the stock should be at $68. CSCO on the other hand has a projected EPS of $1.82, and their growth rate is about 25%. So at 1x growth CSCO would be $43. CSCO is actually getting ~2.5x growth. To put things in perspective, LU growth rate is 20%, and their estimated EPS is $2.50. LU's price at 1x growth is $48, and its also trading close to 2.5x growth. The question then is why is ASND still lagging, instead of trading at 100+. Admittedly people pay more for the leaders, but a factor of 2 seems very large. Unless LU offers a very good deal, it seems like we will get an overvalued stock for one thats more reasonably priced. JMHO Regards, BR