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

To: sam who wrote (51390)	8/3/1998 12:24:00 PM
From: Joseph Colombo	Read Replies (1) \| Respond to of 61433

<<Why wouldn't LU love the deal? They get two companies for LESS than the price of one.>> sam, At first blush, I didn't like this thing at all. Now I see opportunity. The computers and programs that Stratus brings to the party, are not PC's. I believe they are Telco routing related. I also believe that they handle about 70% of the US traffic (don't quote me). That being the case ASND will be a player in a part of the existing voice network. At this point you either back the management, or move on. Joe

To: sam who wrote (51390)	8/3/1998 12:30:00 PM
From: gbh	Read Replies (2) \| Respond to of 61433

Why wouldn't LU love the deal? They get two companies for LESS than the price of one. Maybe because one company was making money, and had positive earnings growth going forward. Now with two companies, it is unknown what the next couple of quarters earnings will be, and more unknown about future growth prospects. Everyone should forget about two companies, or one company, or $800M versus $500M. This is all meaningless. The only thing that matters is how long it will take to sell off the worthless (from ASND's view) assets, and get back on track to 25-30% growth. Right now, its obvious, there is plenty of uncertainty on this issue. As long as the FULL weight of SRA is hanging around ASNDs neck, I doubt we will see much upside. Hopefully, ASND was already working deals to get rid of these albatri (albatrosses??), before this deal was even announced. It is these sales (even more so than 500 and 550 sales) that will lead us back to 50 and beyond.