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Technology Stocks : Ascend Communications (ASND)
ASND 212.00-0.6%3:59 PM EST
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To: Scott who wrote (12708)9/15/1997 2:16:00 PM
From: vegetarian   of 61433
 
>>-ASND has been very weak as investors are concerned that the company,
which has a very backend loaded quarter and is waiting for approvals
for certain products to be sold in Europe, is likely to pre-release.
The fear is that they will pre-release tomorrow - before they speak at an investor conference.
The stock has been very weak.<<

What would pre-releasing a bad earning news at this point achieve? who would it appease at this stage?
The company may as well see its stock price slowly erode, a path they seem to have opted for rather than seeing it tank rapidly.
This price level seems to be a bad time to pre-release because all the institutions are nearly done selling based on their hunches, the individual investors have run in panic so a prerelease at this point will not help anyone but would look like a sort of a mockery.
I think ASND has done significant damage to their reputation this time around in the analyst community (as evidenced by JP Morgan's "eroding communication" comment).
It will take quite a bit on ASND's part to have instituions investing back again because they may choose to invest in other networking companies with whom they feel more comfortable.
A pre-release will take the price further down in a dip and will go sideways from there for a while; if ASND is hoping that the price would jump back up rapidly by pre-releasing they may be playing the same futile game with investor psychology that beginning individual investors try to play with market timing.
But then again if the earnings picture is desperately bad, then a pre-release may make sense.
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