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

To: RockyBalboa who wrote (2461)	8/23/1998 10:12:00 AM
From: Jeff Briley	Read Replies (1) \| Respond to of 12623

As the Ciena CEO states in the conference call, the reaction to Friday's announcement is "grossly exaggerated". CIEN was anticipating $15 million in revenues from AT&T for 1999 revenues. Based on their current $500+ million a year in revenues, this amounts to less than 3% of revenues. The CEO also stated that they would still meet their anticipated earnings numbers for 1999. It is not the announcement, but the fact that the price of CIEN stock dropped so drastically that caused TLAB to cancel the merger vote temporarily. I am expecting the stock price to move back up to the $40-$45 range before September 9 when the next vote will take place. Once the stock recovers, the deal will go through as previously planned. I am long the stock at $33 and held through the dip into the close on Friday. That dip was just due to the uncertainty surrounding the stock going into the weekend. I think the conference call cleared up much of that uncertainty, and we should see a nice gap up Monday morning (as could be seen in the afterhours activity with the price of $34). Jeff