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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Sector Investor who wrote (18974)	10/24/1997 11:27:00 PM
From: jhild	Read Replies (3) \| Respond to of 61433

I think that an important piece of missing information here is whether these deals are dollar denominated. It seems that if they are then someone like NTT may be incented to delay, either directly by changing delivery date or indirectly by being extra stringent in acceptance testing, to a further out date with more favorable exchange rate, or to end of qtr for negotiating with ASND to bring a discount. Now there is their opportunity cost on the other side of this which should tend to keep them on track. (They will need to have a backbone installed sooner or later.) But any delay may not be useful for ASND trying to build value for a takeover. If they are doing local denominated currency transaction, then their hedging can be equally tricky with the same factors at play. Running the currency hedge is then their problem. Ordinarily I think that this isn't such a big deal when the currencies aren't as volatile as they are now. But just take a look at the Japanese Webs (EWJ) or heaven forbid that Japan looks like Hong Kong (EWH), to see what I mean. So either NTT is really important to ASND, in which case these are important issues, or this piece of business isn't all that big a deal in which case, the hedging will be insignificant, but then the value of the business itself will be as well.