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Technology Stocks : Ascend Communications (ASND)
ASND 210.50+0.5%Nov 21 9:30 AM EST
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To: blankmind who wrote (25024)12/1/1997 10:11:00 AM
From: jhild  Read Replies (1) of 61433
 
Blankmind, I am compelled to comment on your idea of a COMS and ASND merger. While COMS could surely weave ASND products into their offerings, and there is surely a benefit to combining the two companies, I would have to wonder at what price? 8 Billion, would indeed be good, but I doubt that COMS sees that kind of value from such a merger, because I sure don't. The harsh facts with regard to ASND is that it is a company doing a little over 1 Billion a year in sales, that carries a market cap of almost 5 Billion. I don't think that ASND with it's shrinking market share and increased levels of competition, is yet worth even the 5 Billion, it commands today. So I don't see any merger in the works primarily because ASND is still too expensive, even at 25. Maybe when sales get to 2 Billion a year.

Inre to your comment that COMS and ASND are battling over the 56K standard, I think that it is better characterized as a battle between COMS and ROK. ASND is most likely bound contractually by ROK to only being able to offer 1 flavor of 56K. I believe this is the basis of ROK/BAY suits. Not being able to offer x2 as well, surely has hurt ASND. ASND management must take responsibility for this situation they have gotten themselves into.
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