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

To: jghutchison who wrote (9322)	7/11/2000 7:11:31 PM
From: Rustam Tahir	Read Replies (2) \| Respond to of 12623

$41 billion! Anyone else think that's a bit rich for a company with annual revenues of 220 million? Will SDL ever generate $41 billion dollars worth of business? But then, if you're not using real money, future cash flow isn't nearly the issue if you bought a business with cash or credit. So what kind of bucks are we talking about that makes this buyout financially sound? 5 billion in additional revs over a five year span? In ten years? When, and how does JDSU earn a profit on its investment? Again, I don't think they ever do, if the currency is real money. But since it's stock, it's almost immaterial. Consequently, I wonder about CIEN. Could this deal be telling me that financial irrationality is now the norm in the sector? $7 billion or so for Cerent, I could sort of see. That number is still fathomable, even though the company had basically zero revs. But 36 1/2 billion, which is where JDSU is trading today, boggles me. Anyone out there who can make financial sense of this deal, I'd love to hear from you. rustam