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Technology Stocks : Ciena (CIEN) -- Ignore unavailable to you. Want to Upgrade?

To: sydney who wrote (8114)	2/19/2000 2:48:00 PM
From: James Fulop	Read Replies (2) \| Respond to of 12623

>>plus heavy "popular" trading on companies that have potential without good earnings, as the e-stocks did in Jan.1999<< Interesting. Now I understand your posts. >>People just want to make money and don't really care what a company does..."immediate" gratification. We all fall victim.<< Perhaps some of the CIEN buyers will fall into that category (as is the case with all stocks.) But you may be misjudging if you think all of them do....not that it matters to you...Oh, and just out of curiosity, would you say that some of the institutional buyers that we have seen come to buy CIEN (see last week's IBD posts) are the same sort of "immediate gratification" buyers? PS The last I checked, "non-exclusive" contract basis revenue is as legitimate as any other kind of revenue....

To: sydney who wrote (8114)	2/19/2000 7:16:00 PM
From: jghutchison	Read Replies (2) \| Respond to of 12623

"Why would a company purchase another company with its stock price so high at the moment"? Good reasons. 1. Stock is the currency of choice when making acquisitions. If you don't have the shares in the treasury, then you simply authorize more - just like Uncle Sugar. 2. A high market valuation is just like a fat wallet. 3. If you are careful and execute well, you can absorb another company to broaden your market share and take out competition, or broaden your product slate and make for a more appealing product with one-stop shopping. 4. You can also due all this without diluting earnings/share. 5. Finally, if you are overvalued and everyone knows it, you make an acquisition just to add real assets, before the dirty stuff hits the fan. Just like AOL. Neat huh. Jack