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

To: pass pass who wrote (23555)	11/15/1997 12:31:00 AM
From: P2V	Read Replies (1) \| Respond to of 61433

Go for the Merger ! Remember Cisco originally invested in CSCC, and later gave up on the idea. They studiously stay away from bicoastal mergers. The Bay Networks bicoastal merger was a disaster, until House was brought in. Same problem appears to exist with Ascend. The "Street" hated the idea from day one.

To: pass pass who wrote (23555)	11/15/1997 12:38:00 AM
From: Gary Korn	Respond to of 61433

Passpass, I do still like the acquisition theory but, unfortunately, I don't see an offer of $60/share in cash, or even in stock. Oh well. <G> In reading the 10Q today, one of my concerns is the tremendous dependence on UUNET. It accounted for something like 15% or 16% of sales. In a 1.2B company, that is a lot of ports. Analysts have pointed to this as a problem. ASND could quickly overcome the drawback were it to be teamed with a giant like Sun Microsystems or CPQ or LU or NT. Some of these "fit" better than others, but there are very good fits out there Absent that, I am concerned about the long-term fundamentals. I don't savor the propect of ASND having to battle CSCO, NT, NN, COMS and LU for orders. And I think that is why consolidation of entities, with some entities falling behind, is inevitable. ASND has good growth prospects now. I think that should be leveraged into a higher acquisition price for the company. Gary Korn