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Technology Stocks : Alcatel Optronics (NASDAQ: ALAO) -- Ignore unavailable to you. Want to Upgrade?

To: John K_k who wrote (4)	1/15/2001 2:25:35 AM
From: pat mudge	Respond to of 16

What are advantages / disadvantages in owning ALAO vs ALA? From my limited knowledge it would make sense for ALAO to be trading higher than ALA, yet that is not the case. I haven't followed ALAO very long but I'm told it traded higher than ALA when it was first spun off and then it dropped in line with the high-fliers. I think it may eventually out-pace its parent and that's why I took a position. Perhaps others can give more scientific rationals for owning it. Pat

To: John K_k who wrote (4)	1/15/2001 3:36:45 PM
From: pat mudge	Respond to of 16

News just out: alcatel.com Paris, January 15, 2001 - Alcatel Optronics (Paris: CGO.PA; NASDAQ: ALAO), a leading supplier of optical components for telecommunication networks, today inaugurated an extension of its production facility based in Lannion, Brittany. This new production platform of more than 20 500 square feet including 1²100 square feet of clean rooms, integrates state-of-the-art technologies and will allow the expansion of manufacturing capacity dedicated to laser sources and pump laser modules. This expansion accounts for the creation of more than 150 new technical jobs over the course of 2000 and represents an investment of more than 15 million Euros. Alcatel Optronics has multiplied its production capacity to keep pace with the explosion in telecommunications traffic due to the expansion of the Internet. Two key product lines for terrestrial and submarine applications are concerned: laser sources, which emit the light used in terrestrial transmission systems, and submarine and terrestrial pump lasers, key elements in building optical amplifiers. . . .

To: John K_k who wrote (4)	1/15/2001 7:43:05 PM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 16

John , below you will find comparison chart for ALAO, ALA, JDSU, GLW and NT. Shortly after IPO, ALAO has been trading around ALA level , and then went down following JDSU, GLW. Original IPO price was babout 6 $ USA higher then ALA and was considered by analysts to be cheap. However market conditions forced ALA to accept rather low range of IPO price. Most of volume takes place in Paris. In quite day it will be 40-80k, when optical companies are doing well in US it will be 200-400k. ALAO has about 100 millions shares of which 80% is won by ALA and only 20 millions are public, most was grab by institutions. ALA indicated that want to make acquisitions in optical components space using ALAO shares, however they will issue part of shares own by Alcatel rather then issuing new ALAO shares. For some time they want to have controlling stake(optical components are to important to give away control). Even NT, who indicated IPO of its own component unit indicated that they want to keep control. In mu opinion ALAO should outpermorm ALA, assuming that JDSU will recover its losses, related to percepion, market and arbitrage(merger). Zbyslaw