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Technology Stocks : DSC Communications -- Ignore unavailable to you. Want to Upgrade?

To: Vladimir Zelener who wrote (4203)	6/3/1998 1:40:00 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 4429

Wall Street Sees DSC As Next Telecom-Equipment Firm To Be Bought Dow Jones Online News, Wednesday, June 03, 1998 at 13:24 NEW YORK -(Dow Jones)- Shares of telecommunication-equipment maker DSC Communications Corp. advanced Wednesday and options activity was heavy as investors bet that DSC will become the next telecommunication-equipment maker to be acquired in the wake of Tellabs Inc.'s planned $7.1 billion acquisition of Ciena Corp. Shares of DSC (DIGI) were up $1.25, or 6.7%, at $20.0625 in Thursday afternoon dealings. Earlier, the stock had been up by as much as 12%. However the stock remains off by more than 20% since the start of the year. Call options on the stock were sizzling for a second session. A call is an option to buy a security at a specific price, usually above the current price within a limited period. DSC has long been rumored as a takeover target, but the Tellabs-Ciena deal has renewed chatter about other telecom-equipment companies. Only a few days after the telecom-equipment maker warned it would post a surprise first-quarter loss, DSC last month announced James Donald would retire as president and chief executive officer but will remain chairman. The company hired an executive-recruitment firm to look for a new CEO. Analysts have been critical of DSC's management and Wall Street applauded the move. Plano, Texas-based DSC makes products very similar to those made by Ciena and Tellabs. Last month, Bell Atlantic Corp. awarded $1.5 billion in contracts to five companies, including DSC, for equipment and software to upgrade the Baby Bell phone company's networks to handle data and video traffic. About $500 million of the total was spread between DSC, Ciena and Tellabs. DSC won a contract to provide so-called cross-connect systems that help to route voice and data traffic through different types of network equipment. Bell Atlantic Wednesday said it will use gear supplied by DSC and Westell Technologies Inc. to offer speedy modem connections based on the ADSL, or asymmetric digital subscriber line, technology. Financial terms weren't disclosed. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.

To: Vladimir Zelener who wrote (4203)	6/3/1998 4:22:00 PM
From: PaperChase	Read Replies (1) \| Respond to of 4429

>>For comparison the cable companies claim that they have 2 way Internet cable services available to 15 million houses. Out of this pool of potential customers only 100,000 subscribed (less then 1%)<< Thanks for the true perspective. Today was telecom hype day on Wall Street. You may remember cable modem hype day quite a while back, the one that drove Zenith (ZE) over $10. Of course, ZE is in bankruptcy now. <G> I hope for Digi's shareholders that a sale is announced soon because that is the only supply of helium holding this one up.