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

To: Kachina who wrote (3156)	9/15/1998 2:26:00 PM
From: gbh	Respond to of 12623

When I look at these stocks, I think of them frequently in terms of how much has been paid for each independent share. Totaling that up over time gives you a more conservative valuation of the company. It can be estimated (kind of) by looking at total float, volume of the stock traded, and price of trade. Kachina, yes, and after all your calculating, you can sell the stock at the current bid price. Or you can hold the stock, and HOPE it goes higher so you can sell at some future higher bid price. But then again, it might go lower, etc, etc, etc,... Valuation has absolutely nothing to do with what price has been paid in the past for a stock. In the case of CIEN, do you think people who paid 90 are comforted with the fact that (this is a guess) 10,000,000 shares were sold at 90? I hope there are no more shares that exist that were bought at 90 :) Valuation is a function of future expectation of earnings, (except in the case of internet stock :) but they will also be valued some day on earnings), plus a small adder for assets like cash, which is generally small on a per share basis.