Ciena (CIEN) Message Board

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Technology Stocks : Ciena (CIEN)

CIEN 230.45

+9.4%

Dec 19 4:00 PM EST

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To: Rustam Tahir who wrote (9323)	7/12/2000 1:10:30 AM
From: cfoe	Read Replies (1) of 12623

I also agree with you. Let's look at it another way. At today's closing price JDSU has to issue 380 million (yes million) shares! I just checked and JDSU has 782 million shares outstanding (not sure if this includes shares for ETEK). This means they will be issuing about 50% more shares. Now that's what I call dilution! Looking at it another way, on $220 million of revenue, the $36 billion purchase price is over 160 times revenue. Now, looking at Ciena, with $608 million TTM revenues, a price tag of half that or $80 times revenue gives us a $48 billion price, and a 100% premium over today's market cap of nearly $24 billion. A bargain!

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