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

To: Rustam Tahir who wrote (9323)	7/11/2000 9:55:51 PM
From: vvargesmd	Respond to of 12623

I tend to agree with you. This is only happening because this is monopoly money. If real money was being used there is no way these prices would occur. You have to agree that given the monopoly money it makes sense for JDSU to go ahead. These companies are being given a license to print and, naturally, they are using. I guess nobody knows how long it's going to last! Might as well use the paper while you can! It makes me think that CIEN is really cheap!!! VVarges

To: Rustam Tahir who wrote (9323)	7/12/2000 1:10:30 AM
From: cfoe	Read Replies (1) \| Respond to 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!