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

To: sepku who wrote (28165)	12/17/1997 6:35:00 PM
From: jeff wheatley	Read Replies (1) \| Respond to of 61433

Style, ASND receives 25-30% of revenues from Asia. Have you seen any analysis of how this will affect earnings over the next couple of quarters? What's your personal opinion?

To: sepku who wrote (28165)	12/17/1997 8:47:00 PM
From: Maverick	Read Replies (2) \| Respond to of 61433

An investor at the Fool suggested the possibility that ASND management is not willing to sell until it can beat earnings in Jan. That way they can justify a higher bid. Very logical, and I can't believe I didn't think about that angle myself. I am glad you realize this. What do you think when Mory said he was comfy w/ 9704 and FY 98 ? From people in the know, ASND has been approached w/ low bids. Mory wanted to prove that ASND could do well on its own so that suitor(s) could raise the bid. He didn't want to sell the co. cheaply. IMHO, suitor(s) will pretty soon realize that they'd better pay up at $40+ when ASND is in the mid $20 than wait until later when ASND can go up to mid $30 on its own. By then, they would have to cough up $50+. What do you think when neither ASND, nor suitor(s), nor CNBC flatly deny it if it were totally untrue ? I know everyone is frustrated, but good thing usually happens just when you least expect it. remeber when rumor had it on/off that CSCC would be acquired by ASND ? It took 6 mos to consumate. Likewise, it took LU 9 mos to jump on Octel. I would speculate that it wouldn't take that long this time b/c ASND could go up to $35 in 1/98. Now is the time. Suitor(s) are M&A stingy but savvy too. Don't underestimate them. I'd rather see ASND remain independent if the bid is < $40/shr. ASND is clearly not desperate. When some big contracts are announced next year coupled w/ good backlog exiting 9704, earning visibility will improve prompting analysts to accord ASND expanding multiples. Although ASND can beat 9704 estimate, I'd rather see it cuts off rev. to build backlog thereby improving visibility. Thanks for being patient listening to my diatribe.