Cascade Communications (CSCC) Message Board

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Technology Stocks : Cascade Communications (CSCC)

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To: Dee Jay who wrote (3394)	4/3/1997 8:54:00 PM
From: Teddy	of 3743

Help me figure this out: If each Cascade share holder will receive .7 shares of Assend for each share they own now, where will those shares come from? THEY HAVE TO INCREASE THE NUMBER OF SHARES OUTSTANDING, right? If they issue 33% more shares it will decrease the earnings per share by 33% (or some equally substancial amount). The result will be that Assend's PE (which now exceeds its growth rate)would be dd while the projected growth rate is still less than 50%. I guess what i am trying to say is that wouldn't it make more sense to sell CSCC about now and buy the new ASND after it takes a 33% drop? (Same goes for 3com and USRX) Please tell me why i am wrong.

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