Ascend Communications (ASND) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Ascend Communications (ASND)

ASND 220.42

+4.9%

Dec 12 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: kevin bennett who wrote (7420)	7/26/1997 11:46:00 PM
From: Verona	of 61433

I woke up this morning thinking about the last week trading on ASND. Two things occurred to me. First I remembered when ASND was up arounf $60 before the merger with Cascade and then took a hard hit from a technical problem wtih the kflex modem. (one which they can surely overcome). The stock was at 42-43 (i couldn't call my broker fast enough). Way way undervalued and about to merge with a billion dollar company! "This is a no brainer" I recall. So now the merger has been completed and they are now a MULTI - BILLION dollar company selling for only a few bucks a share more. WOW! This prompted me to realize how undervalued this stock is. My next question is. . . what is this company worth now? That I do not know the answer to. But one has to wonder that if the co. was worth $60 not too long ago it must be worth much more than that now. Taking into account the dynamics of the future of networking, access to the internet and that need to communicate faster and in different ways which are critical to the success and competition of corporations around the world this company has got to look attractive as a take over candidate. Which brings me to Intel. If we recall intel was the one who scared the hell out of the 3com valuation. Indicating that it was also looking to networking products for another means to beef up its bottom line. Intel has come to the conclusion that competition from cyrex and amd will eventually make it difficult to keep prices up on their chips. The other reason why they will have a difficult time with future earnings is Moores Law . The doulbling of speed in processors will make thier own chips outdated at a faster rate. This will cause disruption in the chip marketplace which will cuse more reductions in prices. As many people will not upgrade that fast, they will be sitting on their own inventory. So one has to conclude that Intel needs to diversify their product line. Just like Microsoft realized it could no longer rely on just its operating system software products to sustain growth. Microsoft wants in on the communication gig so does intel. You know Andy and Bill have probably had many discussions on their next strategies. Intel is looking for other ways to increase revenue and keep a glow on the company. Ascend could be that glimmering jewel that could keep the shine on Intel that would turn it into a Mega company that is not affected by the cyclical turns of the book to bill ratios of the microproccessor industry. These are just my observations and my opinion. Next week ought to be an intersting one. well I guess they all are aren't they? Long and strong ASND Verona

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next