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

To: Gary Korn who wrote (24996)	11/30/1997 1:34:00 PM
From: Larry Myers	Read Replies (1) \| Respond to of 61433

Gary, I like anyone else wish to gain knowledge about ASND from this thread and so I ask questions. You seem to be offended that I asked you a couple of questions. As I said before I don't mean to be argumentative but I ask questions because I want to know. I don't know why you are so sensitive to questions about your theories. Without offending you could you please explain your following statement: >>In response to your first question: To begin with, when CPQ splits from 750MM to 1.5B, its share price will be cut in half from 60 to 30, which is what I said. I also said that if CPQ were to use another 1.5B shares to make a totally non-dilutive acquisition, the share price would remain at 30. For example, if CPQ bought 45B worth of Tbills with the remaining shares, then the shares stay at 30. I'm not saying that there won't be dilution in a purchase. The manner of your question suggests you think I don't know how the issuance of new shares (as opposed to the authorization of new shares) can dilute the stock price. << If CPQ after the split has 1.5 B shares, where do they get the other 1.5 B shares to make a purchase of any kind? Since the shares do not exist but are only authorized shares that could be issued, would issuing them not cause dilution and thus make all the shares worth less than $30? As to your question to me as to what proof I have that CPQ is not interested in ASND; I have none nor do I have any proof that IBM,LU, or anyone else is not interested. I simply asked if you knew of any evidence from CPQ or any Wall Street sources of CPQ's interest in ASND. I don't deny for a moment that such a merger or takeover is possible. I hold what is for me a fairly large stake in ASND and therefore hope there will be a takeover somewhere north of $40. I do not wish to clutter this thread with needless messages so I will not ask you anymore questions on the above issues. I would however like to be educated (meant sincerely) as to how a company doubles its' outstanding shares without causing the value per share to drop. Best to all, LJM