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

To: Dave von Hausen who wrote (49343)	6/28/1998 9:53:00 PM
From: Bindusagar Reddy	Read Replies (1) \| Respond to of 61433

I think market and analysts as well as mutual fund managers are bunch of morons and do not really understand the underlying business well. They think that a company with higher revenues always keeps rolling. May be true, but does not mean other players have no chance. For example, this guy on MS investor JJJuBAK declares a victory for CSCO, in TELCO business based on stock price of CSCO. If you look at recent wins, only one CSCO has in the bag is SPRINT, big deal. Look at the negatives, they lost ATM from GTE to ASND, they screwed up with ATT big time recently. Two most exciting next generation Fiberoptic multimedia backbone builders QWST, WILLIAMS, LCIand even WCOM have chosen ASND equipment. Even the DT choosing for their DFN network is positive, they might place a big order in future. My point is that ASND appears to be executing in their future plans very well. Everybody will jump and praise ASND, when the stock price is 80-90 and will claim that ASND is the king of WAN and so on. Before DELL became a big company they were also fighting big players like IBM, HWP etc. That did not preclude them from growing. Except MSFT, no other company has the economies of scale or monopolistic power to muscle other players. You know market is stupid short term, but rational in long term. This is my own opinion. BR.

To: Dave von Hausen who wrote (49343)	6/29/1998 7:51:00 AM
From: polarisnh	Read Replies (2) \| Respond to of 61433

Dave, The most important thing that Lucent and Cisco have over Ascend is a diverse product line. Ascend is great at what it does but its product line only covers a small segment of the market. If one or more parts of this market have a hiccup similar to what Ascend experienced last year their earnings would probably take a thumping and their share price would most likely get knocked down again. I am not saying this going to happen or not but that is a problem when your niche is fairly narrow. Lucent and Cisco offer fairly diverse solutions in a wide range of technologies. Even though their prices are extremely bloated they have an ability to smooth over product short falls much better than Ascend can. All in all, I feel the best way for Ascend to become a permanent fixture is to merge with a major telecom player like Lucent, Ericsson, Alcatel, Nokia, Siemens, etc. Cheers, Steve