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

To: Intel Trader who wrote (1721)	3/12/1998 4:34:00 AM
From: djane	Read Replies (1) \| Respond to of 12623

from briefing.com 14:25 ET ****** CIENA CORP. (CIEN) 43 1/2 +2 1/2. Almost a month after the company warned about its fiscal Q2 results, shares of this telecommunications equipment supplier are starting to show some life. Yet, three weeks after its earnings warning, the stock is only $1 3/8 above the price level where the stock fell when it lost 28% of its value in one day. News that JP Morgan had initiated coverage with a "buy" of this provider of dense wave division multiplexing systems for fiber-optic communications networks is behind today's upward move. However, after warning that it would miss results with its Q2 numbers, the stock has been vanished to the woodshed even though the company is very much involved in a sector that it expected to expand rapidly during the next several years. In fact, according to analyst William Rabin of JP Morgan, he expects this dense wave sector to grow by "almost 40 percent compound annual rate through 2001, reaching nearly $6 billion." While CIENA is expected to encounter a few hiccups along the way, the prospects are good that this company will obtain a good chuck on the market, having recently been awarded a contract from Cable & Wireless to deploy its MultiWave Sentry system to a project in Germany. But, like any market that is just beginning to expose its potential, expect more competitors to start entering this segment of the dense wave division multiplexing market as Lucent Technologies (LU 111 1/4 +2 15/16) has begun to focus in this area, providing a formidable competitor. Nonetheless, given its strong focus in this area, CIENA can still carve a nice niche for itself, given the growing traffic demand from network providers.