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

To: DHB who wrote (51296)	8/3/1998 7:48:00 AM
From: gbh	Read Replies (2) \| Respond to of 61433

Dan, I'm not sure TA means anything at this point. This will be a news driven stock for the next day or two. No news, and its likely we see more downward pressure. If an announcement is made, it should relieve some of the downward pressure if the announcement deals with SRA's unrelated businesses. Will these be sold/spunoff etc? If not, downward pressure will likely continue since, regardless of purchase price ($800M or $500M or whatever), SRA will be a drag on earnings growth, a big drag. Too many employees for their level of revenue, inconsistent earnings, unsexy business. It is a necessary business, but not a growth business. In fact people here have talked about the fact that integrating this company would be simpler than the Cascade merger. Nothing could be further from the truth. SRA is significantly larger than Cascade in every respect, expect market cap. This will be a difficult acquisition that will require significant management focus.