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

To: Howard S. who wrote (21176)	11/4/1997 9:21:00 PM
From: Jeff Mills	Read Replies (1) \| Respond to of 61433

Howard-- <<What will be your target and what is your time horizon after going long?>> I am looking for about $21.25 (that is the $4 billion barrier) for an absolute bottom based on what is known today (that is if it gets that low which--based on this weeks developments--appears unlikely). I also agree with most others that ASND will be acquired one day due to consolidation in the industry. $7 or $8 Billion seems like numbers that pop into my head for a price tag. I do not feel ASND will be taken out for more than $10 Billion. Do recall though, ASND paid ~ 3.7 Billion in stock for CSCC--and CSCC did about $400 MM in sales/year if I recall. At $8 Billion, we are looking at ~ $42--which would be a reasonable target IMO. PE and PSR would be reasonable up there. But, for ASND to trade up on its own, ASND psychology must be improved in the market. This can happen--and has happend in 97. Recall back in late April, ASND boomed from $40 to $60 in about 2 weeks due to positive energy via upgrades/products/etc. But it looks like ASND is consolidating here. Momentum will return, the question is just when. The stock does look attractive right now, but I would like to see at least a test of the low $20 range. It may never happen.