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

To: pass pass who wrote (26784)	12/7/1997 2:17:00 AM
From: Tech97	Read Replies (2) \| Respond to of 61433

Pass Pass, It all depends on ASND's capital plans. They could go out and float convertible debt with the proceeds to be used for stock buyback and conserve their current cash for building its infrastructure (hiring more R&D personnel) I've seen many companies taking advantage of using low cost of debt to fund stock buyback.

To: pass pass who wrote (26784)	12/7/1997 2:27:00 AM
From: hpeace	Respond to of 61433

pass, pass....as we were discussing..compnaies don't buy their stk that way in open market if they are smart. they sell naked puts..or if your stk is a rocket they buy calls

To: pass pass who wrote (26784)	12/7/1997 10:03:00 AM
From: David Lawrence	Read Replies (1) \| Respond to of 61433

If Ascend buys back shares, it will be a sure sign that they have no intention of being bought out. They would be precluded from doing a pooling of interests transaction. Don't expect support to come from cash being used for a share buyback.

To: pass pass who wrote (26784)	12/7/1997 5:31:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 61433

Pass Pass, stock buy backs have a number of interesting implications. First, it is a way to convert dividends to capital gains because stock buy backs result in increased price per share. At the very least, this defers taxes on the "dividend" since only a sale of the stock triggers a taxable event. And at the time of the sale, given a sufficient holding period and assuming a profit (quite a stretch with ASND of late), the dividend is converted into a long-term capital gain which is taxed at a lower rate than ordinary income. The second point is that stock buybacks need to be measured against what the company perceives to be its best investment opportunities. Regards, Paul