Just say I DONT KNOW!
This was the selling mentality today. Of special note is the Nutmeg Securities quote, a typical anal*ist, instead of saying "I dont follow the stocks" instead realizes he's got to show the wife tonite he was in the WSJ and says something absolutely brilliant. Duhhhh!!!!
This article, in contrast with the Yahoo article, makes the WSJ look pretty weak!
From tonites WSJ:
Ascend Off 15% On Rising Talk Of Merger With Stratus
By Christopher Grimes
NEW YORK (Dow Jones)--Ascend Communications Inc. (ASND)
lost 14% Friday as talk heated up that the networking company
was looking to buy Stratus Computer Inc. (SRA).
Some analysts and investment bankers groaned at the idea of
such a deal, saying the two companies didn't fit. But talk on Wall
Street persisted that there was indeed an imminent agreement.
Earlier Friday, the San Jose Mercury News reported that Ascend
would buy Stratus for about $800 million next week. Neither
company would comment on the deal.
"I dont think it makes sense," Andy Schopick, an analyst at
Nutmeg Securities. "I don't think (investors) would be happy about
it."
The rumors surfaced Wednesday, as Stratus shares rose 20%.
On Friday, Stratus stock rose 2.2% to 28 5/8 on volume of 2.1
million shares, compared with 364,000 shares.
Ascend was off 7 3/8 to 44 1/8 on Nasdaq volume of 24.1 million,
compared with 6.1 million.
First Albany Corp. analyst Matthew Barzowskas noted that
Ascend had been rumored to buy Advanced Fibre
Communications (AFCI) a few weeks ago, until Ascend stanched
the talk.
"They're definitely looking to buy somebody," he said.
Barzowskas said it would make sense for Ascend to buy a part of
Stratus, but not the whole company.
"Stratus does have some telecommunications software
applications that could help Ascend," he said, "but the whole
company could be a negative."
Ascend had temporary problems digesting its last acquisition,
Cascade Communications, which closed a year ago. But
Cascade recently has become a strong part of the business.
A deal with Stratus would have two likely results, he said. First,
Ascend would lost its own status as a takeover target. And
second, its growth would probably slow.
Ascend was rumored to be a target of Lucent Technologies Inc.
(LU) and L.M. Ericsson Telephone Co. (ERICY).
Buying Stratus would be the equivalent of "going out and saying,
'We want to remain independent,"' Barzowskas said.
-Christopher Grimes; 201-938-5253
-Mark Boslet contributed to this repor |
