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

To: blankmind who wrote (25035)	12/1/1997 11:33:00 AM
From: jeff wheatley	Read Replies (1) \| Respond to of 61433

<net income (asnd is roughly the same as coms)> Oh yeah?

To: blankmind who wrote (25035)	12/1/1997 1:12:00 PM
From: jhild	Read Replies (1) \| Respond to of 61433

No disagreement that CSCO is in a league of theirown. The oxygen is getting even a little thinner up there judging by today's action. If competition hits their market share and earnings, and it's yet to happen, more than seat belts will need top be tightened. But so far their story remains in tact and they are demonstrating why they are the market leader. But I can't see ASND commanding 8 x sales. Margins are sure to decrease against the solar wind of technology deflation, especially with more competition. I just can't make a case for COMS at 8X. In case you didn't notice from the last Del Oro report COMS posted admirable gains. One could even wonder the value to COMS of the RAS part of the business. The CSCC part would be a complement, and yes the RAS part would give them a formidable share, but they may get there on their own without any need for ASND. RAS's are not rocket science, and COMS is already spending R&D there and delivering. Maybe you can see an IBM or an LU, make a run at 5X or 6X, and if they were to bid against each other then maybe a little higher. ASND gives either of them an immediate entry or boost, Livingston not withstanding. The problem I see with IBM is that they carry a lower p/e than ASND and such a union wouldn't be seen as acretive. But bigger surprises have happened before.