Ascend Communications (ASND) Message Board

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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 (26652)	12/6/1997 2:35:00 PM
From: Rajiv	Read Replies (2) of 61433

I shorted ASND at 30.625 yesterday. I feel that the takeover rumors will not turn into reality. My take on the rumors is that - Lu might have made an offer of $35/shr when asnd was in the low 30's and asnd refused (Maria B. sources probably forgot to tell her when the offer was made). Since then asnd has gone downhill and LU decided it is better off acquiring Livingston which competes with ASND (does not have a wide range of products as ASND) - Lu management is not foolish to offer 40-42/shr for a company which is trading in the low 20's. ASND's love affair with the big guys is long over - if LU were to offer such a price for ASND, I will be among the people rushing to short LU. Also, LU cannot make a stock offer for any large acquisitions till at least Oct 98. And it simply does not have the sort of $$$ that is required to buy ASND at 40. Next week if there are denials about the takeover or no fresh rumors, ASND will go down hill. There will be lot of people rushing for the exits and it can easily go to the low 20's (no one will care whether the management thinks that they are comfortable with 1998 estimates or not). On the other hand, if the rumors turn out to be true, ASND will move up to the mid 30's (I will be forced to cover my shorts in a hurry). I will then be shorting LU (or whoever makes a bid for ASND). Best of Luck (Longs and Shorts) Rajiv

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