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

To: Jan Crawley who wrote (59737)	2/5/1999 1:27:00 AM
From: jach	Read Replies (1) \| Respond to of 61433

-OT- Message 7671529

To: Jan Crawley who wrote (59737)	2/5/1999 10:18:00 AM
From: GSD	Read Replies (2) \| Respond to of 61433

<People are buying Asnd Jun 85 calls for $9 premium today; over 2,100 contracts traded.> IMO (and apparently opinion of people buying options), there is still buying opportunity for ASND. There's 2 things driving this. First there's the arb discount to the .825 shares of LU. That will close as the deals comes to closure. But IMO the more important factor is the potential effect the news of a LU split will have on LU and therefore on ASND. The last split was announced at last year's shareholders meeting. From the day before the split announcement to the day of the split, LU was up 50%. From everything I'm hearing, another split announcement at this year's SH meeting (Feb 17) is a given. While I would be shocked to see 50% again, it won't surprise me if there is a nice run. If LU can get to $125, ASND will eventually be worth $103. That would be 100% return in 4 months on those Jun 85's. Hope to see it. Long LU and ASND. GSD