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

To: jghutchison who wrote (9792)	11/16/2000 12:15:06 PM
From: Roads End	Read Replies (1) \| Respond to of 12623

Thank you Jack. I understand the shakey start ups are having their problems but credit problems appear to be spilling over to the large cap blue chip players as well. As always your responses are well taken. Steve

To: jghutchison who wrote (9792)	11/17/2000 12:21:44 AM
From: mact	Read Replies (2) \| Respond to of 12623

jack, while i agree that vendor financing is risky, there are other reasons to do this other than just "financing purposes"...for example, co's like cien, scmr, corv and many more will essentially give away their equipment for free(assuming it was financed and loan not payed back), as for every one dollar given away, they get 3 back(esp. during bullish periods)...this occurs when mkt caps start to run up with the stock price when a company can show significant rev. growth(often times from letting small startup telecom co's borrow your own money and having them return it to you as booked rev's)...why wouldnt scmr give away 20M worth of equipment when the only thing the public appreciates is that their rev's increased by 100% Q to Q, hence adding 3b in mkt cap within the week...until now(current fiber shakeout), this type of thinking made perfect sense, but times are changing abit...another shaky example is allowing co's that buy your products have warrants to buy at ipo prices when you go public...they all do this...why shouldnt williams and qwest take free equipment from the likes of jnpr, scmr, onis, corv, and etc...they pay 10M for equipment, then they buy 200 dollar stock at 25 dollars(making it essentially free) and unload during the holy grail of all fiber start ups(the secondary offering when all insiders get PAID IN FULL)...funny world huh?....jmo's. mact