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: Dave Dickerson who wrote (3023)	8/15/1998 2:45:00 AM
From: Chuzzlewit	Respond to of 7342

Dave and thread, Today, the combination of TLAB and CIEN lost a combined market capitalization in excess of $4.3 billion. The question is whether this is justified. Clearly, the earnings shortfall doesn't account for this drop. Panic selling is saying that the loss of a large account represents a permanent setback to the combination. I don't believe that to be the case. I am not an engineer. But from the many posts on this thread, I am convinced that there is a tremendous future in optical networking. I believe that was the motivating factor behind the combination. It was the technology that motivated the merger, not current sales. That being the case, the technology is no less valuable because of the loss of a sale to a large company. It simply underscores the vulnerability of a small, emerging technology company. The combination with TLAB allows the technology to incubate and mature. It removes the pressure to award significant price concessions to a large customer because it provides the financial umbrella that allows the company a degree of independence that it would not enjoy as a stand-alone entity. It may take a few quarters, but if the assessment of the engineering experts on this thread is correct then the reaction of the marketplace was clearly incorrect. Yes, I'm upset at the huge paper loss I suffered today. But I am an investor, not a trader. That means that my eyes are on the long term time horizon. I believe that five years from now what happened yesterday will be a non-event. TTFN, CTC

To: Dave Dickerson who wrote (3023)	8/15/1998 3:33:00 AM
From: ed	Respond to of 7342

David, I am sorry to hear that you lost one year's salary in 10 minutes today, however, for a company with technology of future potential, the stock price will recover quick, maybe, just a mater of two to four weeks when the fund managers all wake up !!!!

To: Dave Dickerson who wrote (3023)	8/15/1998 7:46:00 AM
From: John Carragher	Read Replies (1) \| Respond to of 7342

Dave I know the feeling as tlab is my largest holding. I feel strongly that its management are in charge. We know the at&t situation was old news a few weeks ago. It was also sad about our cfo taking a leave. On top of it all was the miss in earnings which tlab should have know about a few weeks ago. I assume these companies are working closely together. Anyways I read an article over the weekend mentioning future rich or something like that.... You can work hard and believe you will be rewarded but not true. You have to take risk to get reward. Feeling strongly about tlab I felt Fridays action was a gift.... I sold various stocks in my portfolio to buy cien all morning. I also felt buying cien was an additional bonus <g>. I don't have any idea when tlabs stock will recover however the recent purchases aren't in a trade mode anyway... It is more long term investment. Dave I want to thank you for your posts. They helped along with others on this thread to buy when the opportunity came... John

To: Dave Dickerson who wrote (3023)	8/15/1998 3:31:00 PM
From: Gary Korn	Read Replies (2) \| Respond to of 7342

Dave, I've been in the CIEN/TLAB arbitrage since about June. While I was shocked to see the spread yesterday, I briefly heard some kind of assurance that the deal was going ahead as planned. Accordingly, I added to my long/short CIEN/TLAB position with a 5 1/4 point spread. The gain (if it happens) on this newest position will be as much as the gain (if it happens) on much more shares in my earlier position (because the spread was much, much lower then). Consequently, and to anyone confident in the deal going through, I would urge you look at the long/short CIEN/TLAB play on Monday. Gary Korn