Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: djane who wrote (51253)	8/3/1998 1:53:00 AM
From: Bindusagar Reddy	Read Replies (2) \| Respond to of 61433

I love what I hear so far from WSJ. I thought ASND has 500-600 million Cash, may they should use half of that may be 300 million combine that with 300 million cash from SRA and issue about 7 million shares that would not dilute the stock. If teh stock falls further, buy back those 7 million shares with cash they generate from selling the other 3 divisions. At the end you will end up owning the TELECOm segment of SRA fro free and get a young 38 year old executive and some smart engineers. These days intellectuals are what you pay for not for bricks and mortar. I think it is great move they need to make moves that will pay off in long run and MAKE IT HAPPEN. What is all that cash in the bank for make it work and make things happen, JUST DO IT MORY and company. You know the wallstreet oxymorons either can not look ahead or they imagine too much as with AMZN, it does n't matter if fricking AMZN is not expected to make money for next 10 years they bid up the price. Go figure the street, you will go crazy. Just run business, wall street cattle will run for cover and praise you when you least expect. Go for it ASND. BR.

To: djane who wrote (51253)	8/3/1998 2:01:00 AM
From: djane	Respond to of 61433

How to identify winning midcap stocks, with fund manager Arden Armstrong [LU/ASND reference -- see middle] pathfinder.com July 29, 1998 Moneyhost: Our guest tonight is Arden Armstrong, of the MAS fund group. Moneyhost: Ms. Armstrong manages the MAS Mid-Cap Growth and Small-Cap Growth funds so as you can guess we're talking about mid- and small-cap stocks. Please send your questions for Ms. Armstrong into the queue and we will forward them. Arden, could you start by telling us about your background in the investment business? Arden Armstrong: I started about 12 years ago covering tech and telecommunication stocks for four years here at MAS and we started the mid cap growth fund in 1990 and I've been doing that ever since Before that I was at grad school and before that I was an economist Moneyhost: What is the investment philosophy behind the Midcap fund? Arden Armstrong: Our philosophy is the same for mid and small cap growht we look for companies with rapid growth, stability, rising profititbabilty, rising earnings estimates Sometimes we own some aggressive growth stocks and stable growth companies Dunerl asks: Why should I care about small/mid cap stocks? Arden Armstrong: Well, small cap stocks haven't as well as large cap stocks over the last years but over the long run they have provided a higher return You should always have some part of your portfolio in small caps because they tend to have periods of sharp outperformance You just don't know when that will happen And also, they provide good diversification You never want to be in only just one type of stock, like large cap, sometimes they underperform Moneyhost: You've also recently launched the MAS Small-Cap Growth Fund. What is your goal with that fund? Arden Armstrong: Our goal is to outperform the russell 200 0 We're going to own companies with an avg. market cap of 1 billion And we going to try to leverage the same process that we used in the mid cap portfolio which has worked over the last eight years Tradesalot asks: Small caps here in the states are being hammered......do you see an end to this any time soon???? Arden Armstrong: I tend to look at the Nasdaq composite index and while that's had a correction, the correction will probably last a few more weeks Nighthawk888 asks: What sectors do you think small or mid-cap stocks may take off in the next 6 months to a year? Arden Armstrong: Our largest committment is in the consumer and biz services areas We like services because they are not as exposec to foreign currency and foreign competition They are not related to the Asian crisis We're still holding a lot of tech stocks. We like the software companies Tradesalot asks: There are a few small cap telecommunication stocks i know of....ATC, ETCIA, .....do you have any personal picks in this field??? Arden Armstrong: In telecommunications, we own Qwest Globalstar Celluar Communications International In the media area, we like Liberty Media and in tele comm equipment we like General Instrument Moneyhost: You mentioned that you followed a specific process for picking stocks for your funds. Could you describe that process for us? Arden Armstrong: We have a quantitative screen that looks for estimate revisions and then we also try to asses the companies growth characteristics with fundamental research Then we look at valuation And we asses a company's valuation relative to it's growth rate, stability, and profitablity and the goal of valuation is to exclude 20% of the stocks because they are too expensive And then, we have an overall risk control limits, individuals positions and sectors and we follow a strict selling discipline DejaOne asks: do you like Inteenet stocks? Arden Armstrong: We don't own a lot of them We try to exclude the most expensive stocks from consideration We do have a couple of things, like AOL, and @Home Arden Armstrong: Internet stocks in general seem too expensive BRItheGUY1 asks: Miss Armstrong how do you see AOL inthe near term?Stock has dropped 25Rnlast week as if it were a search engine without profits yet. Arden Armstrong: It had a big run and we stocks correct they will typically go to a 50 day moving avg. where aol is now When they have bigger corrections they will go down Arden Armstrong: to they're 200 day moving avg. which for AOL is about 75 dollars If you have confidence in a company you shouldn';t let corrections scare you, you should be buying into corrections. Just be patient BRItheGUY1 asks: Is AOL an internet stock ? Or a utility? Arden Armstrong: Good question i don't think of AOL as a pure Internet stock, I'm not it's a utility either We call our cell phone companies utilities Aol isn't any less a utiltiy than cell phones We call it a computer service company Moneyhost: We are chatting about mid- and small-cap stocks with Arden Armstrong off the MAS fund group. Please send in your questions and we'll forward them. Tradesalot asks: Where do you draw the line between small cap and micro cap stocks?? As in terms of market capitalization Arden Armstrong: Our min. market cap for small cap is 250 million dollars and we also have a liquidity limit We have to have stocks that are liquid enough for insti. investors Swiss_Buffett asks: Arden, do you have a single thing that you absolutely want to see in a stock you consider for purchase? Arden Armstrong: Two things The earnings estimates can't be going down and they profit margins can't be going down Those are the absolute must haves Pupupashu asks: what is the longterm outlook for Cendant Corporation? Arden Armstrong: We used to own HFS It's too big for us now but, when we see a hint of financial fraud Arden Armstrong: we always sell a stock. Because you have no way of knowing what a company's true financial position is. If it wasn't too big to own, I would have sold it So, I don't know what they're outlook is Gstott2 asks: What do you think about Ascend? Do you think Lucent will buy Ascend? Arden Armstrong: They might It would be a decent fit Ascend is a company that's had its ups and downs. It dosen't meet stability criteria [Hey, that's funny...] Boots123 asks: Speaking of correctoins, it looks like we have seen one in Aspen Tech recently. Any thoughts on botton fishing for this stock? Arden Armstrong: We've look at that stock a number of time but never owned it I don't know enough about it to say Skipper_h asks: Do you see small caps rerurning to favor? Arden Armstrong: We think the small cap growth stocks are attractive. But you have to be selective about companies where you're comfortbable about the earnings outlook It's because the economy is slowing More cyclical companies could show earnings deterioration We're focused on stable growth stocks Moneyhost: We are chatting with Arden Armstrong of the MAS fund group. Great quetions so far--please keep them coming! DeeLeo7 asks: Is there any ethical guidelines for the companies you invest in? Arden Armstrong: No But we try to own good companies that are well managed and that often means ethical as well Skipper_h asks: Do you see any hope for the oil service sector? Arden Armstrong: It sure looks grim right now. We own very few of these stocks and only for diversisfication purposes. The long term out look is negative, because technology has made it cheaper to find and produce oil So that make the price go down Also, the economy is slowing Which reduces demand BRItheGUY1 asks: How about Financials? I have watched First Chicago drop hard based on Bank One's poor quality of profits,even though it beat the street. Arden Armstrong: A lot of stocks have had good earnings Arden Armstrong: that had good earnigs reports correctted in the last few weeks The financials we own Arden Armstrong: are Fiserv, Finova, and Probidian MerryMagdalene asks: This downturn of the market - is it a big danger sign? or just a normal adjustment to be expected? Arden Armstrong: It looks like a normal correction to me I would expect the indexes to go back to their 200 day moving avgs. But, you have to monitor Wash. scandals, and Asian crisis Right now, I think that's background noise, but it could get wore worse DeeLeo7 asks: Is profit/employee a stat thats important for the service sector stocks? Arden Armstrong: We look a lot of measures of profitiablity including profit per employee We think the most important measure of profititablity is return on equity Dotcom_2 asks: Any info on where Boston Market might be headed. Bankruptcy? Arden Armstrong: That is a value stock, maybe and we are growth investors so we don't focus on it It has falling earings estimates and falling margins DeeLeo7 asks: What is the main foreign component to your Funds? Arden Armstrong: We own some ADR's and we own some foreign companies that trade on NASDAQ We have several foreign telecommunications Celluar Telecommunication International Celluar Communications International and Orange Brynna2 asks: Do you buy any Canadian small caps? Arden Armstrong: Yes We own Imax, and Cinar Arden Armstrong: Those are both entertainment companies Swiss_Buffett asks: Do you care more for recent profit margins or for like 5yr avg numbers? Arden Armstrong: We look at the recent numbers and how they've been trending over the last 1-2 years We like to see small but steady improvements BRItheGUY1 asks: Do you see year 2000 co.s as a good play at this time? Arden Armstrong: We own some computer services companies They should do a lot of biz between now and 2000 We think there will be a backlog of software projects even after y2k We don't own a y2k tools company Billwind asks: small and mid caps have lagged larger company stocks when and why will this turn around Arden Armstrong: Small company stocks usually do well early in the economic cycle. When the economy is slowing, if you want to own small cap, you should focus on growth stocks If the economy speeds up small cap will do better and the value stocks will probably outperform Brynna2 asks: What is your outlook for resource stocks? Arden Armstrong: We don't own any of them now They're typically affected by currency swings and there is a lot of foreign competition We think the Asian crisis is particularly negative for this group Moneyhost: Our chat with Arden Armstrong wraps up around 5:50p ET--last call for questions. Veincage asks: how do you see the furture growth rate for INTRAnets and video conferencing? Arden Armstrong: Those are both explosive growth areas but, we don't of any companies that are particularly well positioned that meet our investment criteria In the long run, networks can be used for video conferencing We own Comcast and Cablevision RalphNYC asks: Why is there such a premium being paid for liquidity? Arden Armstrong: Liquidity is worth a premium But we think the premium is too high That's why you have a good investment opp. in small caps Brynna2 asks: how well has your fund done year to date? Arden Armstrong: Hold own while I look it up We're up 22.2% midcap Arden Armstrong: Smallcap started July 1 and we are down a little, but we are about 5% ahead of the Russel 2000 small cap Freeflanders asks: Is speech technology the future of computer business and can you recommend some stocks in that area ? Arden Armstrong: Speech recognition will happen but not for quite a while and we are not currently playing that sector Msft is targetting speech tech. so a small cap company would have to compete with them Moneyhost: Thanks for chatting with us tonight, Arden. We'll have a transcript of tonight's chat at the Money.com site in a few days. Arden, how can the audience get more info on your funds and the other MAS funds? Arden Armstrong: Our funds are distributed by discount brokers Charles Schwab and Fidelity and Jack White Moneyhost: Thanks very much--good night!

To: djane who wrote (51253)	8/3/1998 2:02:00 AM
From: Immi	Respond to of 61433

djane, now I can sink back to sleep. I had myself worried. it is not good holding 50% of you ira in one stock. hope we see 50 now soon, since i bought some more on friday. cheers and thanks again immi P.S. I work just at the side of the old cascade in westford, and know several people there. let's see the reaction there.

To: djane who wrote (51253)	8/3/1998 2:06:00 AM
From: djane	Respond to of 61433

7/27/98 Network World. Cisco's Secret Weapon [SNA/IP internetworking] (via the excellent VoIP thread -- comments anyone?) Network World via NewsEdge Corporation : Travel broadens you, trust me. When I get off that airplane and make my way to the hotel late at night, I know I shouldn't order the room-service quesadillas and Coronas but . . . well, I'm weak. More important than my expanding girth, however, is the fact that a recent site visit has broadened my perspective on Cisco. At Cisco's InterWorks Business Unit (IBU) in Raleigh, N.C., I learned about Cisco's secret weapon in its widening war with the established telco equipment makers. Cisco believes its major competitors in the future will be Lucent and Nortel. Cisco is clashing with them as it pushes into the carrier/ISP market, while Lucent and Nortel retaliate by expanding operations in the enterprise. The two camps are maneuvering and posturing for leadership in a world where all traffic - data, voice and video - is carried over IP links. Now it's easy to surmise that Cisco's experience in data networking is its chief asset in this battle. Lucent and Nortel aren't blind to that, and they've been expanding their data net portfolios through acquisitions, such as Nortel's buyout of Bay. But just getting data products won't be enough, argues Cisco's top IBU executive, Selby Wellman. Cisco's real strength, Wellman says, is its expertise in SNA traffic. Did he say SNA? Yup, SNA - the battered, bad-mouthed ol' protocol that still happens to be widely used in corporate America. Wellman's logic is compelling: The Internet has created a huge profit potential for companies that can open up the valuable data residing on their mainframes. Cisco is a leader in SNA/IP internetworking, and it is in the best position to help big companies bring hosts into the IP world for intranet and electronic commerce applications. Business-to-business electronic commerce is predicted to grow dramatically, and that bodes well for any vendor positioned to Web-enable the IBM mainframe infrastructure. Cisco is No. 1 in sales of SNA-capable routers and has a strong position in channel interface processors, which provide the direct connection to hosts. Beyond the LAN, Cisco is trying to maximize its advantage by extending its SNA expertise across the WAN - through a partnership with MCI for managed SNA services, for example. Can its competitors catch up? Maybe, but Nortel won't get much of a stake in SNA integration through the planned Bay acquisition, and it would be difficult for Lucent to buy its way into the market because Cisco's competitors have much smaller shares. Imagine: SNA as a strategic advantage. Who would have thunk it? John Gallant, editor in chief jgallant@nww.com <<Network World -- 07-27-98, p. 36>> [Copyright 1998, Network World]

To: djane who wrote (51253)	8/3/1998 2:09:00 AM
From: djane	Read Replies (1) \| Respond to of 61433

Analysis of possible LU/COMS combination (via COMS thread) Talk : Communications : 3Com \| Previous \| Next \| Respond \| Earnings \| To: William Wang (20006 ) From: DougHboy Friday, Jul 31 1998 2:02PM ET Reply # of 20068 William, I'm skeptical about a LU/COMS combination. It certainly won't happen before October(?) when LU is allowed to do a "pooling of interests" merger. More importantly, LU is likely scared off by COMS's business model. Just as the Ericsson executive said a few months ago, while COMS has attractive businesses, the NIC and Modem products are too volatile to handle. If Ericsson, which has more synergies with COMS, is scared off by COMS, then why would LU want anything to do with the combo? I suspect that LU will get the pick of the litter: ASND. If there is a feeding frenzy after that, then maybe COMS will get scooped up by Alcatel or Ericsson or some other foreign giant. I think it's more likely that COMS will turn around on its own and go it alone. I am still of the belief that COMS should divest itself of its consumer products--i.e. palm, modems. COMS has huge value broken up. Less value as a whole.

To: djane who wrote (51253)	8/3/1998 2:11:00 AM
From: djane	Read Replies (3) \| Respond to of 61433

Phone Carriers Want FCC To Deregulate Data Services Friday July 31 10:10 AM EDT By Aaron Pressman WASHINGTON (Reuters) - Local telephone carriers are unhappy with proposals floated by federal regulators to remove only some restrictions on the companies' Internet and data service offerings, the head of the U.S. Telephone Association said. Officials at the Federal Communications Commission have hinted recently that they are likely to lift some of the 1996 Telecommunication Act's restrictions on high-speed data networks the "Baby Bell" companies plan to build. Under the act, the Bells are forbidden from offering long- distance and data services within their local regions until they open their local telephone networks to competitors. The Bells argue that the demand for data networks, from increasingly wired businesses and the vast growth of the Internet, is exceeding the capacity of existing providers. Without regulatory relief, the companies say they cannot afford to build new systems and relieve the strain. Roy Neel, president of the telephone association, said a plan suggested by some FCC officials requiring the Bells to establish separate subsidiaries for new data networks was burdensome and unnecessary. "In an open and competitive marketplace there's no need for the government to mandate separate subsidiary activity," Neel said at a news conference. "If the marketplace is open, it should be up to the company providing service to determine how it organizes its business." Next week, the FCC will release proposed rules that are expected to allow the Bells to set up data networks in separate subsidiaries free from price regulation and mandatory discounted leasing of data services to other carriers. But the commission is not expected to grant the Bells' formal requests to broadly lift restrictions on in-region data networks. The agency may provide a waiver, however, for data networks serving isolated, rural areas where new competitors are unlikely to begin providing service. While that may not satisfy the companies, some regulatory relief is better than none and the FCC rules should still spur the deployment of data networks, according to industry analyst Scott Cleland at the Legg Mason Precursor Group. "The FCC's proposed rules will greatly accelerate high- speed deployment, but the question is at what rate," Cleland said. "It's certainly a massive improvement, but the rules are going to be incomplete and not fully satisfying." SBC Communications, Ameritech, Bell Atlantic and US West have asked the commission, under a provision of the 1996 law promoting the development of high-speed data networks, to waive the in-region data restrictions on new systems they plan to build. The companies also asked that the systems be exempt from a provision of the law requiring them to lease parts of their networks to competitors at a discount. Smaller phone companies that compete with the Bells and long-distance companies like AT&T and MCI Communications oppose the data network waivers because, they argue, the Bells have not opened their existing networks to competitors. FCC Chairman William Kennard said last month that if local carriers opened their networks so competitors could connect equipment providing high-speed data services, the FCC would not need to require mandatory leasing or price regulation. The Clinton administration's National Telecommunications and Information Administration told the FCC in a letter last week that while it opposed broad deregulation, it favored the separate subsidiary approach. Neel criticized the separate subsidiary requirement as counter to the will of Congress as expressed in the 1996 telecommunications law. "This is just one more example of the commission seemingly determined to keep a stranglehold on these companies," Neel said. "The FCC seems unwilling to get with the spirit of the 1996 act which was deregulation, not more regulation." Copyright c 1998 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.