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

To: Kent Rattey who wrote (50370)	7/24/1998 1:43:00 PM
From: djane	Respond to of 61433

TSC article. Segalas/Harbor Capital join the ASND parade TSC 10: Spiros 'Sig' Segalas Soars with Tech thestreet.com By Alison Pederson Senior Writer 7/24/98 11:40 AM ET Editor's Note: At the end of each quarter, we check in with our TSC 10 managers. Please see our pieces on Hotchkis & Wiley Small Cap, Babson Enterprise II, Rainier Small/Midcap Equity and Westwood Equity. In this piece, we talk to Sig Segalas of Harbor Capital Appreciation. Spiros "Sig" Segalas doesn't have a lot of patience with companies that report bad news, and last quarter Cendant (CD:NYSE) was no exception. The Harbor Capital Appreciation fund manager says Cendant's aggressive acquisitions had begun to make him nervous and he'd already reduced his position before the company dropped its April "accounting irregularities" bombshell. That's when he finally washed his hands of the stock. "When they made their first announcement, that first day, I just blew it right out." Segalas also shows no mercy for companies with earnings shortfalls. In May, he pulled the plug on his position in Diebold (DBD:NYSE) on news that the company's second-quarter earnings would come in below Wall Street's expectations. He booted Compaq (CPQ:NYSE) in March for the same reason. The manager's intolerance hasn't hurt shareholders any. His $4.2 billion fund -- up from $3.6 billion at the end of the first quarter -- blew past the S&P 500 early in the year and hasn't looked back. It's up 24.9% through Thursday, eclipsing the benchmark's 18.4% return, according to Lipper Analytical Services. Other second-quarter changes to the Harbor portfolio include the elimination of FDX (FDX:NYSE) (the parent of Federal Express) and Autozone (AZO:NYSE) (an automotive parts retailer) and the introduction of Ascend (ASND:Nasdaq). The manager says networkers like Ascend and Cisco (CSCO:Nasdaq) and equipment makers like Ciena (CIEN:Nasdaq) and Tellabs (TLAB:Nasdaq) are the closest he'll come to an Internet play right now because valuations on the Net stocks are "just too scary." A buildup of Citicorp (CCI:NYSE) over the last few months made that position the No. 2 holding by mid-July, edging Cisco to No. 3. Segalas says the merger announcement with Travelers (TRV:NYSE) triggered his interest in boosting the fund's stake. At 31% of assets, technology is still tops in the fund, while financials still rank second, at 21%, and pharmaceuticals are still Segalas' third-biggest sector bet, at 13.3%. Here's a rundown of the top stocks as of July 20: Harbor Capital Appreciation Top Holdings Company Size of Holding Return* WorldCom (WCOM:Nasdaq) 3.9% 32.1% Citicorp (CCI:NYSE) 3.5% 27.4% Cisco Systems (CSCO:Nasdaq) 3.1% 50.9% Pfizer (PFE:NYSE) 3.1% 18.3% Morgan Stanley (MWD:NYSE) 2.8% 31.5% General Electric (GE:NYSE) 2.8% 10.8% Chase Manhattan (CMB:NYSE) 2.7% 11.2% Ciena (CIEN:Nasdaq) 2.6% 108% Home Depot (HD:NYSE) 2.5% 39.4% Microsoft (MSFT:Nasdaq) 2.4% 30.7% *Performance from March 31 through July 20. Source: Lipper Analytical Services.

To: Kent Rattey who wrote (50370)	7/24/1998 5:17:00 PM
From: gbh	Read Replies (2) \| Respond to of 61433

Kent, did you sell short at 51 3/4, or buy? Geez, I hope it was a buy. Darren has had some great calls, but his ASND calls have been less than stellar (sorry Darren). ASND has shown quite a bit of strength during this selloff. If CSCO is on track for earnings in early August they will drag ASND this time. ATT just announced a huge network expansion. I'm guessing ASND will get a big chunk of this. Be careful shorting this stock for anything other than quick intraday moves. Just MHO. techweb.com Gary