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

To: Glenn D. Rudolph who wrote (22179)	11/9/1997 1:50:00 PM
From: Douglas V. Fant	Read Replies (2) \| Respond to of 61433

Glenn, Yes, it could go either way. As Kenny Rogers sang in the song "The Gambler": "Every hand is a winner, every hand is a loser". Two things may happen. First ASND may look for acquisitions in the networking sector with prices depressed in hopes of goosing its profit margins back in to the 30% range. Second companies who normally do not do acquisitions may look at ASND as a bargain combined with its current operations. You see it's a mistake to look at ASND separately and independently in terms of impacting the rate of return of an acquiring corporation. Anytime that you merge two corporations you keep the cash flow of both corporations, yet through layoffs and attrition, you reduce the combined cost of running the entity. If done properly the ROR/ROCE etc., of the acquiring corporation will improve. So yes, I do believe that ASND has acquisition exposure at its current price level. But with its good financial conditions ASND may go "on the offensive" too. I'm having lunch Monday with a person who works in the networking sector specifically in order to kick around this topic amongst others. If I glean anything interesting, then I will post it here... Sincerely, Doug F.