Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 200.33

-3.2%

11:49 AM EST

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To: ibrandybuck who wrote (58025)	12/8/1998 5:43:00 PM
From: Chuzzlewit	of 61433

ibrandybuck, it depends upon what your numerator is. For example, it might be tangible net worth, book value, earnings, or earnings growth. And simply increasing the number of authorized shares does not increase the number of shares outstanding, which was one the original points I was making to Tim Luke. The second, of course, is that you are not dealing with cash. So increasing the authorized number of shares is no impediment to anything. Hell, that's exactly what happens in a stock split (plus of course a 100% stock dividend). Just look at the history of this company. Almost two years ago ASND "bought" CSCC at a "price tag" of 0.7 shares of ASND for each share of CSCC. At the time there was general moaning and groaning on this thread -- not to mention considerable gnashing of teeth. Oh the dilution!!! And of course the stock price slid rapidly. But if you look at today's posts you will see a couple of references to just how astute a move it was by Mory. The point remains that the economic driver for a merger is an enhanced future earnings stream which is perceived to increase shareholder value. TTFN, CTC

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