Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 202.23

-4.2%

Dec 2 3:59 PM EST

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To: Tim Luke who wrote (51230)	8/2/1998 6:20:00 PM
From: Chuzzlewit	Read Replies (1) of 61433

Maybe you should consider this when you think about the market reaction to the rumor. ASND's capitalized value decreased by more than $1.4 billion on an anticipated purchase equal to $800 million. It doesn't make sense, because if ASND had somehow lost $800 million in assets the anticipated drop would be around $5 per share, all other things being equal. And that assumes no value at all to SRA! Also think about the fact that SRA's price was little changed by the rumor. It's as if over a billion dollars in combined market cap evaporated over the course of a few hours. It also makes no sense to think that this combination somehow precludes a potential LU merger, because the acquirer can always sell off or spin off unwanted assets. My guess is that some people just wanted out, and didn't stop to think. That smells like momentum investors to me. TTFN, CCTC

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