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: Gary Korn who wrote (24930)	11/29/1997 12:45:00 AM
From: blankmind	Read Replies (1) \| Respond to of 61433

this is a past tense statement, insinuating at one time they would have tried to compete, but dropped the plan. why would be the question? or have they decided to possibly acquire one of these three (sic)companies? cascade prior to the merger had 94 million shares (10-q 4/25/97) with a price at the time of $32/share for a market cap of 3 billion dollars. ascend prior to merger in march had 120 million shares (10-k 3/6/97) with a price of $55/share for a market cap of 6.6 billion. combining the companies today we have 190 million shares (yahoo) with a price of $25/share for a market cap of 4.75 billion. this is why asnd is a takeover target today, ascend + cascade = 5 billion dollar company, and not a 10 billion dollar company. the buyer of asnd will not receive sahara, cascade, and ascend for less than what asnd traded for solo at the time cpq was thinking of going into the ras business. the acquirer of asnd now receives the products and technologies of three companies and at a discount. will asnd untilmately be bought out? if the price continues to hover at this level, the likelihood is yes, the product mix, market and technology will entice someone.

To: Gary Korn who wrote (24930)	11/29/1997 12:48:00 AM
From: blankmind	Respond to of 61433

after my last post, i know what will shoot the price of asnd through the roof, and i do not believe it has been discussed. a break up of asnd into its former pieces and they issue stock for each of the companies to the shareholders. no comments are necessary, this will not happen.

To: Gary Korn who wrote (24930)	11/29/1997 6:24:00 AM
From: Robert Scott	Read Replies (1) \| Respond to of 61433

I think Compaq is more interested in the edge than in the center of the network. A good portion of Ascend's value is in the center. While it's not out of the question, I do not expect Compaq to buy Ascend. However, if their long-term goal is to enter the telecom business in a single swoop, there is hardly a better choice and fits in nicely with the LAN equipment of Intel.

To: Gary Korn who wrote (24930)	11/29/1997 8:52:00 AM
From: The BayWatcher	Read Replies (4) \| Respond to of 61433

Gary, the last part of the interview you posted suggested to me CPQ knows it's not a networking company and probably won't be a real player for a few years at least. IMHO, IBM will enter the networking arena before CPQ. How CPQ will compete with the likes of ASND and COMS seems sheer speculation and fanciful thinking. Their purchase of Microcom will not get them anywhere near that goal. I am still concerned about ASND sales in Asia where they have a huge presence and derive significant income. I'm also worried about them losing more and more market share to CSCO and COMS and would like to hear that this is not the case. I've also previously posted that the insider sale at 23 3/4 was very disturbing. It sure doesn't seem that 23 was the bottom.