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

To: djane who wrote (51832)	8/8/1998 12:37:00 AM
From: Bindusagar Reddy	Read Replies (1) \| Respond to of 61433

Djane, excellent analysis of another bonehead analyst who just came out of school, can not tell the difference between a Switch and a Router. I am confident Mory will execute this one perfectly. Three reasons for it. 1. It is closer to Cascade headquarters. 2. They know what they want to do from the beginning. (Game plan). 3. They have found a young executive Bruce Sachs, who can help with the process. 4. They have proven that they can handle a merger of nearly equal size across the country and shown to be successful. (Which Mr. Chambers never even attempted). Keeps babbling Mergers fail, mergers fail and mergers fail. All he does is acquire small companies and the garbage companies and introduce vaporware.) Wall street will see that ASND is a winner once they show that they can integrate this one well. Money flows out of CSCO, next year when year 2000 spending by fortune 500 companies slow their network spending especially LAN switching and commodity products. They will be severely behind in TELCO market, TELCO spending may not affected by th 2000 issue as much, since the demand of traffic will increase exponentially. I still think they can do it themselves if they can execute. Big and small is relative with time. Small boats can become big, Big ones can become small in one year. The effect is magnified by Wallstreet. Same analysts and fund managers suddenly find a new Darling and they won't remember what they said 6 months ago. BR

To: djane who wrote (51832)	8/8/1998 12:45:00 AM
From: Bharath Rangarajan	Respond to of 61433

Re: "[ASND will] Pay $822 million in stock. Ascend will exchange 0.75 shares of its own stock for each outstanding share of Stratus. This purchase price will be offset somewhat [uh, cash would probably be offset completely] by Stratus' $280 million cash in the bank. " Actually Stratus has quite a bit more value. The book value is about $24/share. Current assets are ~ 500M, while current liabilities are at ~150M. In addition, the cash flow per share is quite positive. On the whole, it might be quite positive (from purely a financial point of view). Of course, adding this in the Forrester article would have made the report look wishy washy! Regards BR