Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Glenn D. Rudolph who wrote (20024)	10/30/1997 9:27:00 PM
From: sepku	Read Replies (3) \| Respond to of 61433

Interesting info...via AOL's Fool....... --------------------------------------------------------------------------------------------- Subject: Re: U.S.WEST Date: Thu, Oct 30, 1997 20:28 EST From: OSTrail Message-id: <19971031012801.UAA14973@ladder01.news.aol.com> Spoke with ASND today. Here is a brief overview. 1. US West. ASND supplies equipment to US West also. US West has said they will buy both ASND and Cisco equipment. Cisco's order for 200,000 ports over 5 years was viewed as small. They estimate $2 Million a month revenue. 2. Lanquest lab results that claims Cisco's 5300 is better than ASND's Max TNT. Lanquest is partly owned by Cisco. The test results were not actual phone line conditions. The tech department at ASND with an independent lab will release data within a week or two that will address the lanquest results. ASND informed me that ISP's and phone companies test equipment on their own sites and would not believe the results from lanquest. ASND has not lost any customers because of this. 3. Europe. Mory thought Europe would pick up in 1998. The Subcriber rate is 40 subcribers to 1 port in Europe. In the US, it is 10 subscribers to 1 port. Microsoft says that they would like to see 7 to 1 port on their online service. What has happen in Europe is the subscriber does not stay on line very long because it is per minute usage. ASND thinks that will change with deregulation of phone companies and flat rate pricing, there will need to be a big build-out of backbone equipment. The same goes for Japan. 4. 4th Quarter estimates. ASND has guided analysts with revenue for the 4th at about $290 Million. That should do about .22 to .23 cents. Maybe room for a surprise to the upside. ASND has guided analysts with flat international sales for the first half of 1998. Better the 2nd half of 1998. 5. Lucent buying Livingston. Not concerned in the short term. Livingston makes access concentrators with only 48 ports...not a powerful piece of equipment...longer term who knows. ASND was surprised by the move because the Livingston was a small player with only $46 Million in Revenue 1996. I personally think Lucent is getting their feet wet for a bigger buy later in 1998....possible ASND. 6. Stock buy back. No info given. ASND may have a high PE for its growth rate in 1998, but I remember when United Airlines had a PE of 148 a couple years back. You cannot look at PE when deciding value here. The selling frenzy is feeding on itself here and who knows where the bottom is. I spoke with an analyst today who covers ASND, he said like me that ASND was a buy at 32.5...he bought also. I suspect with heavy block buying now the end is near. It will take some upgrades to stop the carnage. Cheap PC's mean more people connecting online...it's coming...be patient! Cheers!