Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 209.98

+4.3%

3:59 PM EST

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To: Gary Korn who wrote (17435)	10/11/1997 11:50:00 AM
From: Potato Farmer	of 61433

Gary, I just don't think so. I think the price to sales ratio and P/E are still way too high. ASND's potential to run up on good news is still there, which would make any buyout for any reasonable number very unlikely. I could not see any takeout at less than about 55, which is more of a premium than most people with big money are willing to pay. The price to book is also too high. ASND has a lot of cash but not enough to be interesting to LU. They would be better served to go after COMS, BAY, little ANET or maybe (private) Brocade. ANET is at $12, it makes a great product and has $6 per share in cash. BAY has a very low price to sales ratio. COMS has a much broader franchise than ASND. The Yen is down too far, and too many Japanese companies just lost big money (really big money) in the "Baht"ulism crisis in SE Asia. Most of them will keep their money close to home earning 1.75% for awhile. One has to ask, why would LU want ASND? Access to customers? They already serve all of ASND's large customers. Why would they want the small ones (ma and pa internet service provider)? Products? They can buy the products from ASND for a lot less than buying the company. Cash horde? Hardly. Improve price to sales or price to book? No. Glamor? Don't think so. I just don't see. Sorry. Wish I did, but I don't. Pete F.

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