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: The ChrisMeister who wrote (3502)	9/2/1998 4:49:00 PM
From: Doughboy	Respond to of 7342

You've got about $1/sh earnings and meager growth. Hardly more than a market P/E seems warranted. CIEN is worth $25 (+/-5), IMO. Being one of the "dreamers" on the Ciena thread, I'll respond. Ciena's growth is not meager; it's 28% based on this year's earnings, and more than 30% going forward. Not significantly different than CSCO's or TLAB's, and those companies are/were trading at P/Es of 40-50 1999 earnings. If we guesstimate 1.39 earnings for '99 then we can estimate a conservative share price of 34.75 (P/E=25) to 55.6 (P/E=40), significantly better than the $20-30 you appraised it at (and not even accounting for the fact that Ciena has in the past traded at more than 50 times earnings). And let's not forget, Ciena shareholders deserve a takeover premium of 20-25% or more if Ciena is in play. I still think Ciena was worth a 1:1 ratio, and is at least worth .5(Cisco). Doughboy