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: jach who wrote (3137)	9/15/1998 9:31:00 AM
From: gbh	Respond to of 12623

based on comparison of ciena and strm, in fact ciena at this point in time has larger revenue as well as better earnings estimate than strm at the time strm was acquired; STRM was tradinga round 40$ and csco paid minimum 55$ for strm. jach, CIEN does have larger revenue than STRM did, but not by much. But your view on earnings is wrong. CIEN's past earnings were stellar. Current earnings, and prospects for future earnings are VERY clouded by their own admission. This is the reason for the current share price. Also, I calculate the premium paid for STRM at 37%. This is probably about what CIEN could get if they were to sell now. 13 + 37% = about 18. Maybe a little higher. I would love for them to be able to get $35, but my eyes are open to the facts on the table. Becasue of tlab misfortune and the mkt downturn ciena is at this price, that is way undervalued; Oh, please. Give me a break. You are blaming TLAB and the market for CIEN's slide from 70-90 down to 13???? This is absurd. IMO, Ciena will triple within three months if they announce some new contracts; they do have new contracts to annouce based on news conference; You are certainly entitled to your opinion. Mine obviously differs. As far as new contracts, they announced they will do a better job at PR, but I don't think they have announced any new customers. They have announced a gloomy 4Q and '99. I agree the company is ripe for a comeback, IF they can show the investment community that they can replace lost customers and focus on the business at hand, and again grow earnings. But, no gifts will be given to CIEN in terms of share appreciation. I continue to believe they need a merger to gain access to a more respected and far reaching sales and marketing organization. Without this the road going forward will be difficult. That why Nettles needs to lower his view of his companies worth and get on with moving the company to the next level, as a subsidiary of a larger entity.