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Technology Stocks : Ascend Communications (ASND)
ASND 210.91-0.8%3:59 PM EST

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To: Gary Korn who wrote (26622)12/6/1997 2:39:00 PM
From: blankmind   of 61433
 
time to revisit dilution (part 2).

the most obvious cause to price dilution is purchasing a company for a premium to the industry.

when asnd purchased cscc at a premium, this caused price dilution to asnd shareholders. yes they acquired assets in the stock swap, but at a premium. both are networking stocks, and since a premium was paid, until the new company can expand to fill this premium, the price will be fall.
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