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Technology Stocks : Ascend Communications (ASND)
ASND 212.33+1.1%Nov 28 9:30 AM EST
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To: Steve Morytko who wrote (52803)8/26/1998 11:47:00 AM
From: bucky89  Read Replies (1) of 61433
 
I disagree with the idea that ASND/LU marriage makes LU a data networking
powerhouse and that LU stock will soar as a result. ASND has a niche, and by no means
are they anywhere near the likes of CSCO, BAY, and 3COM. ASND would be one of
several acquistions necessary for LU to compete broadly with CSCO.

Never thought LU would be a powerhouse with ASND. Rather, it would give them some basis to maintain their bloated stock price. Wouldn't be pretty if LU got a 50% haircut from today's levels, something I consider very likely.

ASND has more than a niche right now. They are more than just a RAS company. They are in the core of carrier networks, and that carries quite a bit of leverage. They are in a much better position than 3Com or Bay.

Remember too that LU products attempt to compete in many of the same markets as ASND. They seem more like a competitor to me - one with an overvalued stock price.

True only to a certain extent. LU has no multiservice switch. They may be working on one, but they've got to be at least two years behind Cisco and Ascend, if not much more than that. The product overlap is in the boneheaded acquisitions they made with Yurie and Livingston. These guys were niche players before LU, and they still are while part of LU--not necessarily REAL competition. ASND's real competitor is Cisco.

Other than that, I really agree with your comments.

bucky89
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