Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 198.89

-4.5%

3:41 PM EST

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To: Jorj X Mckie who wrote (58708)	1/11/1999 5:15:00 PM
From: Mr.Fun	Read Replies (1) of 61433

Jorj, LU's sales of MX1000, ACxxx and Portmasters are less than $150million a year. Of course it is embarrassing that they would have anted up $1.7 billion for this less than thrilling revenue stream, but it will have no effect on valuation. Expect this one to go through - all the right people are saying all the right things - the price will be $85 to $90. Most analysts expect LU would let ASND keep doing what they're doing, while adding considerable sales muscle behind the effort - Just in time for two huge contracts up for bid this year, AT&T-BT and MCI/WorldCom global network. I would not expect LU to take a big hit. The street likes this deal. ASND is going to grow earnings 50% in 1999 and likely another 35% in 2000 - this will accelerate LU's earnings growth. LU is very unlikely to miss a quarter going forward, and that is what it would take to slow this baby down. In the long run, LU needs to develop an ATM based #5 - its customers have told them that is what they will be buying for the next generation. Ascend gives them the most comprehensive story for next-generation networks, bar none.

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