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

To: getgo234 who wrote (21587)	11/6/1997 5:05:00 PM
From: Jeff Mills	Respond to of 61433

getgo-- <<At what price will the market value of ASND be equal to the purchase price of CSCC (based on the market value of ASND at the time of the acquisition)?>> ASND paid $3.7 Billion in stock for CSCC. That corresponds to $19.68 today (ie $3700MM/188MM shares).

To: getgo234 who wrote (21587)	11/6/1997 5:09:00 PM
From: Jeff Jordan	Read Replies (1) \| Respond to of 61433

Of course ASND is undervalued! If Cisco is so great because earnings are what 400+mil? so what ASND was 270+ 300 next qtr. Look at everything else! Ascend is growing faster!!!!!!!! The MAX TNT "IS" the next big thing...wait and see! by 3Q '98 Ascend will be a thing of beauty for those of us who bought @ $25!!!! Jeff

To: getgo234 who wrote (21587)	11/6/1997 5:43:00 PM
From: mark alan rosenberg	Read Replies (4) \| Respond to of 61433

getgo 234: On June 30, 1997, Cascade was merged in Ascend (Ascend being the survivor company)for a consideration of $2.5 billion. At the time ASND was a $55 stock. Today, the Cascade shareholder is looking at a $17 1/2/ equiv. Cascade share- which would obviously make them very unhappy. Cascade shareolders received for each share of Cascade, .7 shares of ASND. Cascade had $350 million in gross revenues for the trailing 12 mos. at that time, so ASND payed around 6.5 X revs. for Cascade. Actually this was a very good deal for ASND. Cascade's actual R&D costs were more than ASND's. The merger will eventually pay off big, as costs, ie. R&D, will become more efficient and many overlaps are eliminated (just like bank mergers). At Dec. 1996, Cascade had $340 million in sales, and Ascend had close to $600 million. This year ASND will wrap up with $1.2 billion in sales. It should push 1998 with 30-40% annual growth. Even at 5% sequential Q-Q growth, ASND will wind up with $1.45 billion gross revs. in '98, or a minimum of 21% growth. This growth will probably go to low teens in the 3rd and 4th Q's. Look at the other networkers. ASND trades at a capitalization of 4X revs. Cisco trades at 7X revs. Livingston got bought out at 12X revs. Other high growth ATM's trade at around 5X revs. A serious buy out would probably graviate no less than 7.5 X revs, and that would be a good deal for the acquirer who wants into this high growth area. The next 3 year projection for this industry is 5 x present revenue base. That is huge. Ascend will be a major player-Ascend will be a major player. The new products onstream will be great. What is going on now? The media bashing of ASND just doesn't stop, does it? Fortune, CNBC, etc. It appears that ASND is being battered by the shorts. Could there be an one or several big investment houses behind the shorting and descent. Who knows? The cheaper ASND goes, the better deal it will be for the acquirer. Manipulation, maybe? $25/ share. $561 million cash and equivs. Maybe next year we approach 40% growth, maybe? Have you ever seen more VALUE, and the bang for the buck in growth, than this? Question: when is the take-over bid going to happen? Mark