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

To: sepku who wrote (21117)	11/4/1997 5:28:00 PM
From: Gary Korn	Read Replies (2) \| Respond to of 61433

Just a thought: Assume ASND is wrapping up a transaction with an acquiring company. If that were the case, some decrease in stock price is okay, since it increases the margin of the takeover (i.e., from 24-25 to 48-50). At a point, however, the diminution in stock price can go too far. I wonder if that was the case today when, not too long after the stock fell to 24 and change, Ashby made it known that earnings estimates for 4Q97 and for all of 1998 will be met. Perhaps, rather than looking at an upward target, management at this juncture is more focused on keeping the stock within a range, and perhaps 25 is at the lower end of that range (which, perhaps, prompted a tad of conservative support from Mr. Ashby). After all, even if an acquisition is in the works, it could always be renegotiated should the stock totally tank. (a la MCI). Anyway, it is just a thought. Gary Korn

To: sepku who wrote (21117)	11/4/1997 5:47:00 PM
From: hitesh puri	Read Replies (2) \| Respond to of 61433

Style an All, I doubt that investors will be ebullient for too long with Cisco's statements regarding margins. They clearly said now that after this quarters 65.1 % gross margin they expect it to go lower in the near future. Looks like BAY, COMS and ASND are really turning up the heat in pricing in the Switching and RA sectors and the efficiency machine of the giants can go only so far to nullify the effect. Its very apparent from the the malaise affecting Intel after AMD started cutting prices and Intel had to grudgingly follow and we know the result : 100 -> 76. -hitesh