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

To: Dennis R. Duke who wrote (49531)	7/6/1998 2:41:00 PM
From: Bindusagar Reddy	Respond to of 61433

Hi, dennis. I found this in CBS marketwatch. This networking analyst is right on the ball. Th hype is in the internet stocks who may never show profits like AMZN, but the biggest beneficiaries of the INTERNET revolution are the netowrking equipment providers especillay those building the backbones. Such as QWST,WMB, ASND, CSCO etc. Here is the clip. Even companies that haven't seen light of day Internet stocks rise again By Binti T. Harvey, CBS MarketWatch Last Update: 02:15 PM July 06, 1998Also see Silicon NEW YORK (CBS.MW) -- Internet issues kicked off another blockbuster week after another stock split and speculation about more marketing agreements with media companies. However, at least one analyst is advising investors to avoid hype and look for value in data and telecommunications equipment makers. Lycos (LCOS) led the group higher after its board approved a two-for-one stock split payable to shareholders Aug. 14. The stock gained 10 15/16 to 90 Monday afternoon. Shares of Internet software maker Inktomi (INKT) vaulted 5 1/2 to 53 1/2 after Goldman Sachs initiated coverage with a "market outperform" rating. Other lesser known Internet companies, such as Web site mall Cybershop International (CYSP), Net Gravity (NETG) and Egghead.net (EGGS), also climbed. Some of these shares rose 40 percent Monday. Other Internet stocks gaining ground included Yahoo! (YHOO), up 5 5/8 to 178 1/2 amid speculation that it too will soon announce a stock split, Amazon.com (AMZN), up 2 5/8 to 126 5/8, Excite (XCIT) up 4 3/16 to 103 1/8 and DoubleClick (DCLK), up 3 1/8 to 74 3/4. Richard Woo, networking analyst at Thomson Kerhaghan & Co., believes Internet-stock buying has spilled over into the telecommunications equipment and data networking equipment sectors in the past two weeks. "These networking and telecom companies provide key equipment to Internet companies, so we have some Internet-centered buying," Woo said. However, Woo stresses that investors looking for value should buy the equipment vendors instead of the Internet issues. "The equipment vendors are more solidly supported fundamentally," Woo said. Woo said upcoming financial results from Fore and Ascend next week, coupled with better-than-expected earnings from 3Com have renewed interest in the group. Woo notes that many equipment vendors are developing technologies that will build the Internet infrastructure and ready the transition into voice as well as data networking. Woo expects companies like Cisco, Lucent and Ascend to continue to grow at the same pace for the next two or three years, while many Internet stocks fizzle out. "Many of these Internet companies aren't even selling technology, they're selling things like books. Anybody can sell books!"ÿ Woo said. "There's reality and then there's just hype." Climbing equipment manufacturers included Lucent (LU), up 2 1/4 to 84 3/4, Cisco (CSCO) 3/4 to 93 3/8, Ascend (ASND) 7/8 to 49 7/8, Fore (FORE) 5/16 to 26 1/16 and 3Com (COMS) 1/16 to 29 7/16. ÿ Binti T. Harvey is a reporter for CBS MarketWatch. Regards, BR