SI
SI
discoversearch

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 210.01+1.7%Nov 26 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: vegetarian who wrote (25935)12/4/1997 9:59:00 PM
From: vegetarian  Read Replies (2) of 61433
 
Here is my take on the scenario that can logically unfold for tomorrow.
But don't take it seriously because the wall street does not operate logically. :-)

What do we know:

-that ASND wants to sell itself
-there is a buyer willing to pay a premium price for ASND over its current market value
- ASND's rejection of a bid of $35 news coming into media is no happenstance, I am sure ASND wants people to know that it is looking for a buyout, that soothes shareholder feeling, tells prospective buyers what ASND wants in price and also tells them that they need to act because somebody is interested in them
-at this stage we do not know of anything concrete is going on

Who would possibly act:

-too early for institutions to be buying at this stage based soelely on the rumor of a potential buyout
-OK for individual investors to buy (contributing to small up volume)
-does not make sense for any holders to be selling at this point because of the possibility of a low hangning fruit
-makes sense for shorts (23M is a large number) to cover because of the buyout possibility in the future and that ASND is going to meet its estimates would not take its price down much below 25

I would expect the price jump to be due to short covering and retail buying in the next few days then down again to expiration.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News