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Technology Stocks : TLAB info? -- Ignore unavailable to you. Want to Upgrade?

To: Bong Lewis who wrote (2185)	2/20/1998 11:42:00 PM
From: craig crawford	Respond to of 7342

<< Though CIEN is of 26% today but its valuation is still high >> I think TLAB is just as if not more expensive than CIEN. TLAB's valuation isn't exactly "cheap". It was a much better buy in the 40's. CIEN was too expensive at 63 just like TLAB was too expensive at 65. TLAB became a good buy in the mid 40's and now CIEN is a good buy in the low 40's. TLAB and CIEN have the same PSR and CIEN has a lower multiple on earnings (although some would argue that CIEN's earnings picture is much more cloudy). << Not for now. I am not comfortable to catch the falling knife. >> That's fine, you don't have to listen to me. It might be better to wait. I'm just saying that CIEN is going to be one of the premier growth companies for the next century, and whether you buy it at 42, 52, or 35 it won't make much difference when it is at 105. << It's still a young company and dont have consistent records as TLAB. >> So CIEN should be penalized becuase it has acheived success faster than TLAB? I wonder how many people made an argument that Cisco didn't have a track record in the early 1990's so it was too dangerous to purcase. TLAB is considered a great growth stock because they have consistently grown their sales and earnings over a long period of time. I'm not trying to put down TLAB but it has taken them almost 8 years as a public company to achieve $1 billion in sales. CIEN has $455 million in TTM sales and has only been public a year. A year and a half ago CIEN had no sales. Zippo, zilch. Even with the WCOM push-out management said they are still comfortable with $600 million in sales for 1998 (a 62% increase over 1997). << I missed COMS last time as it didnt fall below 31. >> In my mind COMS is more expensive than CIEN even though COMS is 50 points off it's high. COMS will be lucky to earn a dollar for 1998. They will earn less money in 1998 than they did in 1997. A mid thirites multiple for COMS sounds more expensive to me than mid thirties for a company that is the fastest growing start-up in history. Yes CIEN has more impressive sales gains than NSCP, C$CO, AAPL, M$FT, TLAB, A$ND, C$CC, YHOO, you name it.