Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Pullin-GS who wrote (22737)	11/11/1997 7:24:00 PM
From: Rational	Read Replies (1) \| Respond to of 61433

All: I have been thinking of buying ASND. I am neither long nor short. I see the following problems: 1. Credibility of CEO with the WS Analysts; he did not indicate the earnings short-fall and market share shrinkage. 2. The fear that market share may shrink more than it is revealed, given the belief that the CEO is prone to reveal less of the bad news. 3. Some defects in products, whereas customers are less likely to take risk with potentially defective products. 4. Over-valuation of the stock. The P/E is still very high, given the growing competition among net-working companies. 5. A fear that the international market may not support tech stocks as well as in the past. A lot of the fear may be over-blown, but unless the CEO regains credibility, the stock price is unlikely to go up. ASND-CSCO seems like APM-RDRT. ASND is still a great company, IMHO, but it is difficult to tell what the fair price should be. As soon as big players who wanted to sell have finished selling, the price will move up based on new players and new information. Sankar

To: Pullin-GS who wrote (22737)	11/11/1997 9:53:00 PM
From: Jeff Jordan	Read Replies (1) \| Respond to of 61433

The idea that a vendor must pay a fee to use it in a chip, or must buy the chip from a specific vendor will never be a standard. The ITU-T, ANSI, and IEEE will decide on a set of standards that will make up a unit-standard know as the 56K half-duplex Standard. This is how it has been done in the past. Paul, I think this is a nieve statement. The first company like a Lucent that develops a breakthrough technology that leaves the current technology in the dust will become the standard. After all thats why these companies spend so much on R&D. This is also why companies like Ascend work closely with companies like Lucent/Rockwell and others to develop new products. Case in point. Rambus's RDRAM technology. In about 2 years it will totally replace all current forms of memory chips producted today. They have signed (licensed) every major chip manufacturer. At first many of them resisted,but one by one they tendered up the $2mil license tribute and signed their royalty aggreement. It was that or back an improved SDram chip consortium and possibly get left out.But if it wasn't for the endosement of a industry leader like Intel this IPO probably wouldn't have a chance.Alliances are becoming more and more important. The technology industry changes so rapidly you have to be sure you are backing the right horse. I believe Ascend is at a significant advantage with their next generation product line. With the rapid growth in the internet infrastructure and all the convergence of technologies there is room for everyone right now. But in a few more years you will see several very strong leaders emerge such as Lucent. I doubt we will see Ascend much longer as an independent enity. Who knows analog modems will probably be extinct in 5 years! I'm almost positive. Jeff