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

To: blankmind who wrote (35860)	2/22/1998 6:39:00 PM
From: sepku	Read Replies (1) \| Respond to of 61433

>>>why not put that 5.4 billion in a cd at 6% and make twice as much (324 mil in cd vs 160 mil income from cien) with no risk?<<< The cost of financing $5.4B would neutralize the income with no future growth potential in a CD compared to a company?

To: blankmind who wrote (35860)	2/22/1998 6:59:00 PM
From: Gary Korn	Read Replies (1) \| Respond to of 61433

5.4 billion at 6% = 324 million a year Why not put that 5.4 billion in a cd at 6% and make twice as much (324 mil in cd vs 160 mil income from cien) with no risk? blankmind, Thank you for the softball. The answer is because CIEN earnings and income have increased at over 100% annually (a rate that of course will decline). In two years, that 6% CD would be looking might puny compared to the revenues attributable to CIEN. In fact, you could have said the same thing about the cost of purchasing CSCC. You know what's scary? I think that Ejabat has the vision to be thinking along these DWDM (Dense Wavelength Division Multiplexing) lines as well. How dissimilar was the leap from RAS to ATM? Anyway, now that this debate is inching along, I'll be going to a movie myself tonite, so I won't be able to claim 36,000. Then again, things are moving so slow that it just might be unclaimed when I get back. Still, we gotta let Glenn have it. Gary Korn