Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 205.50

-1.5%

Dec 5 9:30 AM EST

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To: Sector Investor who wrote (27225)	12/9/1997 2:40:00 PM
From: Greg h2o	of 61433

SI, it shouldn't be hard justifying a $48-50 price tag when it traded at $80 1/4 within the last 12 months. However, I'm not so sure I'd use the same #'s as Leeza is using. Just because Nations Bank (as an example) is willing to pay 5 1/2 times book for Boatmen's Bancshares does not mean the same valuation will be used in the next acquisition. And, of course, we all know that banks USED to go for 1.5 to 2 times book.... I think the PE analysis is virtually worthless in looking at a possible buyout of ASND, given the recent weakness in earnings due to the recent acquisition of Cascade, the wait for a 56k resolution and weakness in Asia. IF (and that's a big IF) ASND is acquired it will be predicated on future earnings potential and potential verticle integration of products with the acquirer, not on trailing earnings (in my opinion). regards, greg

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