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

To: Tony Dang who wrote (21348)	11/5/1997 8:19:00 PM
From: sepku	Read Replies (3) \| Respond to of 61433

>>>Ascend's revenue and earnings are doomed for next quarter. What coporate buyer is going to buy concentrators this next quarter when he can wait a quarter and save 25% and be a hero.<<< Those price cuts are LIST prices, not street prices which have been falling in RAS for the past few quarters already. The list prices haven't caught up with the street prices yet to figure in how much they've really been discounted. Also, the price cuts to street prices will only be 10% for the first half of 1998. Also, just because revenues from RAS sales will be shaved does not mean eps will be "doomed". Be realistic...and take note of the projected margins that was also mentioned. Margins have been 65%. This is expected to fall to 62% at worst case, and 64% in best case. ASND will compensate to the RAS price cuts through trimming expenses and restructuring the discount levels for large clients. You really should take the whole article into context. Style Pts.

To: Tony Dang who wrote (21348)	11/5/1997 9:09:00 PM
From: RGM	Respond to of 61433

You do not miss a thing - that bean counter with the loose mouth will hurt ASND's stock price tomorrow. Do these guys want to drive the price down so that they pick up shares in the high teens (i.e., RATL)? What do you think? I would like to know what the target numbers are for the sales management. Their bonus money is usually tied to those numbers. They usually are very conservative on their target numbers to ensure that they achieve their quarterly objectives. My breakeven on ASND is at 40 so I have no choice but to be long on this company. I'll buy somemore in the high teen range to average down my breakeven price. Let's all hang in there. Rob

To: Tony Dang who wrote (21348)	11/6/1997 5:44:00 AM
From: James J. Cramer	Read Replies (1) \| Respond to of 61433

I think the cuts are in line. Actually, I always regard statements like this as good air-clearing. Get the weak holders out. I am inclined to find an entry point soon. But CSCo is the mutual fund holding of choice in this area, and nothing said here will change it. Why is everyone warming up to Fore, and please dont yell at me for mentioning Fore in the ASND room, as I know protocol but I also know that it seems inconsistent to warm to Fore in light of Ascend's problems jjc