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Technology Stocks : Ascend Communications (ASND)
ASND 209.15-1.5%Nov 20 3:59 PM EST

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To: sepku who wrote (35861)2/22/1998 9:17:00 PM
From: blankmind  Read Replies (1) of 61433
 
The cost of financing $5.4B would neutralize the income with no future growth potential in a CD compared to a company? style pts

why would you want to spend 5.4 billion to earn 160 million? you will need to double the income to 320 million just to pay off the interest in one year at 6%. this is a lousy rate of return on an investment. i would sell asnd in a heartbeat if they were to acquire a company for so much with so little income.

please do not tell me they have lots of sales. so what? the problem is the high valuation to sales.

cien faces increasing competition from lu and nt in the not to distant future, it will be tough for cien to keep the growth and margins.
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