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Technology Stocks : Cascade Communications (CSCC)

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To: Peter Caradonna who wrote (3523)4/12/1997 5:30:00 PM
From: Glenn D. Rudolph   of 3743
 
What CSCC earns before the merger is irrelevant.

I own a lot of CSCC and other networkers. I do not dissagree that networking will continue to grow. That is why I own those securities. However, the earnings of CSCC have a direct affect on the stock of ASND. The aquisition is a pooling of interests and thus, CSCC will make ASND shares dilutive. It will reduce the earnings per share of ASND once the deal is complete. More ASND shares will be on the market. ASND will only do as well as reflected by the perfomance of CSCC and vice versa.

A good example is the COMS/USRX merger. USRX will only do as well as COMS.

Glenn
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