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

To: AlanH who wrote (45006)	4/21/1998 2:56:00 AM
From: djane	Read Replies (1) \| Respond to of 61433

WSJ article. Cisco's Vote of Confidence Gives a Lift to Ciena Shares [djane comment. Isn't this more evidence of a possible LU/ASND merger? In prior articles, LU stated it doesn't want to partner with CSCO and will make acquisitions in the networking area. Now, CSCO partners with a key LU competitor. And, in the last CC, didn't ASND say it was working on WDM? Would LU be this partner? Just a thought.] interactive.wsj.com By LISA BRANSTEN, 4/21/98 THE WALL STREET JOURNAL INTERACTIVE EDITION SAN FRANCISCO -- A key endorsement from networking giant Cisco Systems sent shares of Ciena up 6.2% Monday. Shares of Ciena rose 2 7/8 to 48 1/2 on the Nasdaq Stock Market. Meanwhile, the Nasdaq Composite Index gained 20.54 to 1887.14, and Morgan Stanley's high-tech 35 index rose 12.44 to 565.93. Under the agreement announced by the two companies, Ciena and Cisco will work together to ensure that Ciena's technology -- which increases the amount of data that can be carried by a single piece of fiber-optic cable -- works seamlessly with Cisco's data-networking equipment. Analysts didn't expect the deal to have any immediate effect on Ciena's earnings or revenue, but said that the relationship should reassure customers and investors who had been worried that the Linthicum, Md., company was losing its leadership position. "This is a very large endorsement of Ciena products," said Bill Rabin, an analyst at J.P. Morgan Securities. "This is like the big boy on the street walking around with the little guy and saying, 'This is my friend.' " Ciena is a leader in dense wavelength division multiplexing (DWDM) technology, which increases bandwidth by splitting fibers into separate channels that can carry data at the same time. Salomon Smith Barney analyst Steve Levy said the deal is "another indication that the market for [DWDM] systems is going to be pretty darn huge." Analysts believe demand for DWDM technology will increase as individuals and business try to send more and more data over the existing long-distance infrastructure. Ciena, analysts say, is in a strong position to grab much of that increased demand. "Ciena is clearly out there ahead of everyone else in terms of technology," said J.P. Morgan's Mr. Rabin. NationsBanc Montgomery Securities analyst Bill Magill said he was also encouraged by indications from Ciena's management that the company would be able to keep second-quarter revenue about even with those of the first quarter despite a dropoff in sales to WorldCom. For much of last year, Ciena was a stock market darling. After going public in February 1997 at $23 a share, the company's stock soared as high as 63 5/8 in October. At the beginning of this year, however, Ciena shares were battered by two pieces of bad news. In January, telecommunications-equipment giant Lucent Technologies announced that it had developed a technology similar to Ciena's. Then in February, Ciena announced that telecom giant WorldCom, which accounted for as much as 45% of Ciena's revenue, planned to scale back orders. Analysts largely believe that the stock will approach or pass its past highs by the end of the year. Mr. Rabin forecasts that the stock will be back over 60 by the end of the year and Kevin Slocum, of SoundView Financial Group Inc., said it would be back over its highs of last year sometime this summer. Meanwhile, Salomon's Mr. Levy has a target of 65, and Mr. Magill of NationsBanc has a price target of 56 by the end of this year. Monday's Market Activity Elsewhere in the technology sector Monday, Gateway 2000 rose 2 3/4 to 50 3/4 on the New York Stock Exchange. CS First Boston named Gateway the featured stock of the week. It kept a "buy" rating on the stock of the computer maker. After the close of trading Monday, Gateway, as expected, unveiled a division to build more formal ties to dealers, in an effort to reach the business market (see article). International Business Machines rose 1 11/16 to 109 5/8 in primary trading on the Big Board. After the close of trading, the computer giant posted profit a cent a share above analysts' consensus estimate (see article). In composite trading, the stock closed at 111 3/16, up 3 7/16 for the day. Lexmark International Group gained 11 1/4 to 59 on the Big Board after the maker of printers and printing supplies reported first-quarter earnings that beat analysts' estimates by a wide margin (see article). ISS Group slipped 1 3/8 to 49 on Nasdaq. Goldman Sachs initiated coverage of the stock of the Internet-security company with a "market outperform" rating, while UBS Securities initiated coverage with a "buy" rating. Omega Research rose 1/2 to 5 5/8 on Nasdaq. The data provider reported a profit of $801,954, or four cents a share, beating First Call's consensus analyst estimate of two cents a share. Revenue rose to $7 million from $6.7 million. Omega said major upgrade releases of its TradeStation and OptionStation products will be made near the end of the second quarter. Comsat slipped 1/16 to 38 9/16 on the Big Board. The satellite operator posted a profit of seven cents a diluted share, reversing a year-ago loss (see article). Write to Lisa Bransten at lisa.bransten@news.wsj.com. Return to top of page Copyright c 1998 Dow Jones & Company, Inc. All Rights Reserved.

To: AlanH who wrote (45006)	4/21/1998 6:51:00 PM
From: Jan Crawley	Read Replies (2) \| Respond to of 61433

Hi Alan, If my May 45 & 40 covered call shares are called away from me on May expiry date, then I would have no position in Asnd. But if they expires, I would have the desirable number of core/long shares; which is approximately 25% of my original Asnd holdings. The cost basis is in the low 30s. I would like to participate fully in the options opportunities Asnd has to offer. I have rooms to accommodate writing uncovered puts on regular intervals. Thanks again. Jan