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

To: uu who wrote (21840)	11/7/1997 1:00:00 PM
From: Kumar Nathan	Read Replies (1) \| Respond to of 61433

Addi: I would like to discuss with you at a macro level and then we can discuss about ASND in specific. Some two months ago, networking industry has been giving us and analyst community conflicting and confusing statements. For example, CSCO was telling Europe is strong and Japan is poor in sales. Whereas ASND was telling that they are strong in Japan but slower Europe sales. The big players in the industry have been giving a different recovery horizons. This confuses almost all analysts. Normally when analysts are confused, they will just shun the entire sector and refuse to make recommendations and is waiting to see hard evidence in terms of quarterly earnings and order backlog. This is what has happened to networking industry for the past 3-6 months. On top of it there is a 56K standard fight. On top of it CSCO was bad mouthing ASND and ASND bad mouthing CSCO. COMS was also critical of ASND. All these petty soapopera stuffs were going on and the analysts , to be on the safeside, refused to take any positions. IMO that is a responsible thing to do. On top of it there were surprising mergers and acquistions. Wall Street do not like surprises. Adding fuel to the fire, ASND has been shooting themselves at their foot. later below the hip. Now they started to do above the hip. When there is a bad news big institutions will run for cover and analysts just ignored the industry and completely downgraded. Now ASND mgmt lost its credibility. Completely. There were lots of bad mouthing. On top of it, Price erosion is at an all time high level. Announced growth rate is at its all time low. Managment has trapped themselves in a firefighting mode. Addi, you have to answer yourself this question. If you are a new investor and if you agree with my above statement, would you put your money in this company. If the answer is no, then the stock will go further down at a rapid pace. If the answer is yes, then the stock will climb up. We all talk here with a biased opinion that the stock is unduely punished. That is not true. We say this because we are getting hurt. If you insulate from our personal injury and look at it with objectivity, we can agree that market is doing what it supposed to do. I hope I make sense. Regards Kumar