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: Glenn D. Rudolph who wrote (24684)	11/25/1997 9:11:00 PM
From: swrdfsh	Read Replies (2) \| Respond to of 61433

On Yahoo chat jjc just said he is "worried" about CPQ making a big acquisitiion.

To: Glenn D. Rudolph who wrote (24684)	11/25/1997 9:26:00 PM
From: Maverick	Read Replies (2) \| Respond to of 61433

CPQ+INTC have collaborated closely in NW sector. CPQ has made significant investment in this area itself. CPQ already made a number of acquisition in Fast Ethernet switch arena. CPQ&INTC has a joint venture to develop market for GBE, xDSL, and RAS. Read the News Only thread for more info.

To: Glenn D. Rudolph who wrote (24684)	11/25/1997 9:30:00 PM
From: satish kamat	Read Replies (1) \| Respond to of 61433

Glenn: Compaq earlier bought Tandem Computers which gave them foot in the enterprise-wise server market. However, that is only part of the puzzle. Tandem gave them multi-processor servers which are essential for back-office processing market. Since "network is the computer" CPQ (which is essntially a cash flow machine generating large free cash) may decide that it want to complete the puzzle with a networking gear company. So I wouldn't be surprised if they make a bid for COMS, CS or ASND. CPQ needs a networking gear company as DELL is kicking their UKW. My hypothesis is that the COMS makes a better candidate for their low end networking products connect the individual PCs through the corporate LAN network to enterprise servers. Personally, I never bought COMS but will take position during this tax-selling for its strategic fit with CPQ and IBM. ASND with its WAN portfolio of products is a perfect fit with LU, Nortel, Nokia or Ericson rather than CPQ (I don't mean to knock Gary's work, since I do sincerely believe that ASND will be picked up later this year or early next year by one of these telco equip. makers). Tax-loss selling \asian worries\ product transition has created a fire sell in networking sector which will be over soon. The best way to play it probably is to accumulate ASND, XYLN (below 16), COMS (26-34) at this prices. (I will aslo take NN at 26 and CSCO at 45.) satish kamat

To: Glenn D. Rudolph who wrote (24684)	11/25/1997 11:05:00 PM
From: Sector Investor	Read Replies (1) \| Respond to of 61433

<<I was looking for a press release indicating the intent of CPQ to make aquisitions in the networking field. I believe the statement was made during the conference call held after their last earnings. I distinctly recall hearing it but cannot find it in writing.>> Several months ago, (April-May) I read an article that said CPQ had $5B in cash on the balance sheet and was looking to enter the networking field. This predates the CPQ rumors, which may stem initially from that article. I have no idea where I read that now.