TSC article. Silicon Saturday: Apple, Equant, Ascend and Hadco
thestreet.com
By David Landis
Special to TheStreet.com
7/25/98 12:15 AM ET
A selection of some of the most intriguing tech stock
ideas on the Web. The items presented do not represent
the views of TheStreet.com; rather, the collection is
offered as a service to our members who may be
scanning the Web for stock-related information.
Ascend Communications
William Schaff (7/21)
Shares of Ascend Communications (ASND:Nasdaq), a
maker of networking equipment for businesses,
telecommunications companies and Internet service
providers, have more than doubled since last December to
51. The impressive rise is due less to improved
fundamentals than to a change in perceptions, says
William Schaff, chief investment officer for Bay Isle
Financial in San Francisco.
Ascend shares were depressed last year by a perception
that Ascend wouldn't be able to stand up to increasing
competition, particularly from Cisco (CSCO:Nasdaq),
says Schaff. Investors also were concerned when Ascend
executives were selling stock at 30. But the company has
introduced a number of new products that have generated
stronger-than-expected sales. Management has
suggested that earnings per share will be about $1.20 in
1998 and $1.60 in 1999, up from $1.07 in 1997.
There have been rumors that Ascend may be an
acquisition target of Lucent (LU:NYSE) or Ericsson
(ERICY:Nasdaq ADR), says Schaff. "Given Lucent's high
share price, I wouldn't be surprised if it made a bid by
offering its own shares in exchange for Ascend's," he
said.
More information can be found at: www.techweb.com |
