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

To: Gary Korn who wrote (26778)	12/7/1997 1:35:00 AM
From: Tech97	Read Replies (1) \| Respond to of 61433

Gary, I believe the Cascade merger was consummated on June 30 and therefore any annoucement of a stock buyback program would have to occur after December 31.

To: Gary Korn who wrote (26778)	12/7/1997 2:00:00 AM
From: HammerHead	Read Replies (1) \| Respond to of 61433

Another insider registered to sell 25,000 shares during the week ending 12/05/97. Any implication to the rumors? The 25,000 shares doesn't mean much, but at the low price and at the time they show the confident on the street estimates. ASCEND COMMS ASND 607,813 25,000 1 - V 24.31 insidertrader.com

To: Gary Korn who wrote (26778)	12/7/1997 2:48:00 AM
From: HammerHead	Respond to of 61433

Also 3 CSCO insdiers registered to sell 170,000 shares at $89.85 during the week ending 12/05/97. IT seems Cisco insiders (9 registered since Nov.) are quite active selling their stocks recently.

To: Gary Korn who wrote (26778)	12/7/1997 9:31:00 PM
From: Roadkill	Read Replies (2) \| Respond to of 61433

I would disagree strongly if ASND instituted a share buy-back program. Even if ASND spent every penny of its $500 MM in cash, and bought the stock at $25/share, we're only looking at 20 MM shares. That's about 10% of the float. That would make the EPS increase about 11% (current EPS / shares left after buyback). Even with a slight PE expansion, you're looking at a 15% increase in the stock price, tops. Not exactly something to write home about. We would be left with a company with little or no cash, which would, in turn, possibly affect its market value negatively. It would no longer have a strong balance sheet. Companies with cash survive economic downturns. Those without don't. Technology is a cash-intensive business. To stay ahead, companies must be sinking their resources into R&D. If ASND had to blow a wad, I would rather see them spend it there. In fact, I was pleased to hear in the 3Q conference call that ASND would be increasing R&D. That's what will bring us back. Just MHO. Matt