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

To: hal jordan who wrote (25084)	12/1/1997 8:19:00 PM
From: Jeff Jordan	Read Replies (1) \| Respond to of 61433

I'm still looking for my entry point later this month. This sucker had better not go into the 30's before January or I will truly be pissed--at myself for waiting. Hal, I've read your posts from other threads. Covered Calls? Anyway, prepare yourself to be pissed THIS WEEK! Jeff

To: hal jordan who wrote (25084)	12/1/1997 8:37:00 PM
From: Jeff Jordan	Read Replies (1) \| Respond to of 61433

ASND blew it by foregoing Cascade's development work with the AX series and future xDSL products. Probably politics. The west coast was in charge and their engineers got what they wanted. The tests I have heard about proved the AX was a far superior product to the TNT. Water under the bridge at this point. But it could have been a great competitor to the CSCO AS series. I'm not familuar with this...but I have talked to an Ascend engineer who was hot about xDSL being the next big thing....so, maybe they know more than we do? Jeff

To: hal jordan who wrote (25084)	12/2/1997 12:13:00 AM
From: sepku	Respond to of 61433

>>>What I think will happen is CSCO will lower the price of the AS5200/5300 to the point that ASND is getting nowhere near the margins they used to make with the MAX.<<< This will undoubtably occur, and is exactly what I was speaking of. Unfortunately, COMS' Total Control will get hit in the nuts from the fall-out of an ASND/CSCO price-war. However, although it will be unfortunately leaner times for ASND in terms of margins, I believe that of highest priority should be preservation of market share, first and foremost. The reason being, that as the RA market rapidly expands into the next millenium, encumbent market share greatly increases the chances of carving out an equivelent % of the total market revenues. Not to mention the importance of forming new business relationships and reinforcment of existing ones -- repeat business is the richest and most strategic advantage in any competitive environment. Therefore, I believe margins should be preserved through all means possible (management mentioned intention to acheive this through re-pricing of preferred customer pricing plans, operational cost-cutting, etc), but ASND should also not hesitate to do everything in its power to maximize/defend market share and technological leadership...even at the cost of a few pennies in margin. Style Pts.