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

To: Jack Hartmann who wrote (11889)	3/8/2002 9:16:42 AM
From: Ibexx	Respond to of 12623

Jack, Many thanks for sharing the ML report. Ibexx

To: Jack Hartmann who wrote (11889)	3/8/2002 11:32:20 AM
From: jghutchison	Read Replies (2) \| Respond to of 12623

Jack, This is the first brokerage report I've seen that recommends a "sell". Apparently this reflects the new sell side analyst thinking regarding pumping stocks in order to curry favor, all under SEC and public pressure, of course. The ML report is a brutal assessment of the company and the sector. Let's see how time proves the theory. Has ML recommended a sell at the bottom of the market, after recommending buy at the top? It appears that the analysts who wrote that report are new to the sector, as they replaced another ML analyst. ML cites negative factors of customer concentration, slashed spending, excess network capacity, increasing competition, and operating expenses out of line with sales. Well maybe. Ciena has a very broad base of customers, much more so than its competitors. The slashed spending is history. It does not pay to drive by looking in the rearview mirror. The future is what counts and it is very bright. Excess capacity? Where? Maybe an excess of dark fiber, but that is not excess capacity. One of these days the analysts will figure this out. I see reduced competition as Ciena has taken out a key competitor and others are struggling to survive. Nortel recently dropped their MEMS switch that they had very high hopes for. Lucent is a standing joke. Sycamore is on the ropes, along with Corvis. What competition are they talking about? Now is the time to plow and plant seeds for another crop. R&D must be maintained in order to do this. Furthermore, Ciena has just announced a key move to farm out some manufacturing in order to reduce costs even further. When the sector recovers, Ciena will lead the way with a bold charge. Jack Hutchison