Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: synchro who wrote (2620)	6/26/1998 9:15:00 AM
From: Paul Shread	Read Replies (1) \| Respond to of 7342

I'd love to see CSCO do something with TLAB. In one move, it would put both of them pretty much on equal footing with LU and NT. Of course, if I like TLAB so much, I should probably just buy the stock. The only problem is, the recent run-up appears to be factoring in a takeover; the market can't believe the CIEN deal is THAT promising after initially marking them down for it. Good luck to all. Paul

To: synchro who wrote (2620)	6/26/1998 9:18:00 AM
From: Beltropolis Boy	Read Replies (1) \| Respond to of 7342

perhaps jubak's a lurker: Posted 6/26/98 Jubak's Journal Who has networking's inside track? Cisco is way out in front in the communications race. But Lucent, Tellabs and Nortel all are charging hard from behind. By Jim Jubak Somebody's going to get left in the dust in this horse race. Lucent Technologies Inc. (LU) has sued Cisco Systems Inc. (CSCO), charging the networking leader with stealing patents. Northern Telecom Ltd. (NT) has plunked down $9 billion to buy struggling Bay Networks Inc. (BAY), adding new ammunition to its arsenal. And Tellabs Inc. (TLAB) snatched Ciena Corp. (CIEN), staking its claim to join the Big Three. Forget about nicey-nice partnerships and cooperation. These companies are pulling out the whips and looking to send other riders tumbling into the rail. The winner gets the biggest hunk of the revenue from building the communications network of tomorrow, the one that combines the voice traffic of the current phone system with the rivers of data currently streaming down the Internet. But which company should investors back? The winner is likely to grow annual earnings at 30% or better for a decade and trade at a price-to-earnings multiple well above 50. The losers? Well, they could treat investors the way Cabletron Systems Inc. (CS) has. The stock of that onetime networking star has dropped by 48% in the past three years. I'm going to take a stab at handicapping these four companies -- Lucent, Cisco, Northern Telecom and Tellabs -- right now. (I know that other companies compete in this market, but with the possible exception of Ericsson (ERICY) -- if it makes a serious acquisition -- I don't think they stack up to these four companies.) I assume many of you will disagree with my conclusions, but I'll try to lay out my reasoning in enough detail so that, at worst, you'll come away understanding my methodology for comparing these companies. . . . Tellabs/Ciena? I'm betting that they can pull it off -- and Tellabs' ability to grow sales of Ciena's existing products gives the combined company some time. (Tellabs was another Jubak's Pick in March -- see "Picking Up on Telecom Mergers" -- and I will continue to hold.) investor.msn.com