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

To: Techplayer who wrote (9996)	12/14/2000 10:52:14 AM
From: James Fulop	Respond to of 12623

>>The fact is that Cien had not written down the acquisition costs of Omnia when the stock rocketed from the lows. The founders of Omnia were not even able to sell all of their shares until the cost of the deal exceeded 2 billion.<< I am no accounting expert, but it would seem you think that acquisition costs are a direct function of the price at which the stock used in the acquisition is sold. That is not my understanding of the way it is done....(but I have been wrong many times in the past...<g>)

To: Techplayer who wrote (9996)	12/14/2000 11:30:43 AM
From: jghutchison	Read Replies (1) \| Respond to of 12623

techplayer, You are going to have to explain how the $400 million acquistion cost of Omnia translates to $1.5 cost to the shareholders of Ciena. I'm just an engineer, I don't understand that accounting. Educate me. I also believe James Fulop's comment was right on the money regarding Cisco's acquisitions, as he beat me to the punch on that one. Let me see you explain that away. Aren't the scenarios similar? Or don't you like to get pinned down? Buying a product before it was deployed? You have got to be kidding. This is done all the time. Nortel buys XROS. Lucent buys Chromatis. Sycamore buys Scirocco. Cisco buys Cerent. Ciena buys Lightera. Give me a break. Jack Hutchison