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Technology Stocks : TLAB info? -- Ignore unavailable to you. Want to Upgrade?

To: Clay Takaya who wrote (5945)	8/26/1999 12:03:00 PM
From: still learning	Respond to of 7342

TLAb would not fit a normal CSCO acq anyway. I did think it would still be a great buy for them. In comparing TLAB w/ Cerent, remember, are we using p/s or mkt cap as a measure; based on a 70-140x p/s ratio (depending if you use their sales of $22mm in 1H 99 or their "run rate" of $100 mm, CERENT is much more expensive than TLAB. Question is, will CSCO/Cerent make up that ground in a hurry, and what is the value of the "lesser risk" of buying a technology vs. cultural assimilation of a TLAB. CSCO has made its way quite well buying small companies and quickly assimilating them. They could not do that with TLAB. OTOH, will this drive TLAB into someone else's arms -- LU, CIEN, etc.? I think that TLAB needs to show a strong reaction to this challenge, as it now pits CSCO squarely against them and needs to be addressed.