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Technology Stocks : Dell Technologies Inc.
DELL 122.46-8.5%Nov 17 3:59 PM EST

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To: Mohan Marette who wrote (63700)9/4/1998 11:41:00 AM
From: Chuzzlewit  Read Replies (8) of 176387
 
Mohan, ** OT **

Give TLAB a long look. I really don't understand why this company is getting whacked. Here's some simple arithmetic which you might find intriguing (or maybe boring!). The company had an all time high a couple of months ago of around $93. The Naz is down around 25%, so lets say that if the company got hit like the average NAZ share it would trade at about $70. It announced plans to merge with Ciena, and after some negative news from cien it renegotiated the exchange rate at 0.8 TLAB for each Cien. Now here's the interesting part: If you assume that cien is worthless, then you could conceptually view the situation as split. TLAB currently has around 180 MM shares o/s, and after the merger there will be around 260MM shares o/s. So, if CIEN were totally worthless TLAB should be trading at around $48.29. TLAB is currently trading at around 42, and cien is far from worthless.

Boy do I wish I had some cash now!

TTFN,
CTC
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