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: Helios who wrote (3216)	9/16/1998 8:03:00 PM
From: dougjn	Read Replies (1) \| Respond to of 12623

Yes. And what a stupid, pig headed management. I think it is obvious that Cien refused a new, lower stock merger exchange rate suggested by Tlab. Tlab wanted this deal, but knew its stockholders were in revolt. It also, reasonably, wasn't willing to allow Cien's increasing problems to drag it down commensurately. Cien should have accepted the .5 or whatever exchange rate that Tlab said it needed. They didn't. The stock is now in the absolute basement. To stay, and perhaps, and even probably, descend lower. If I were still a Cien shareholder (sold at 80 and change) I would be livid at management. I'd actually demand a rapprochement with Tlab. It is a merger that still makes sense. Except for the a*hole Cien management. Doug

To: Helios who wrote (3216)	9/16/1998 9:31:00 PM
From: gbh	Read Replies (1) \| Respond to of 12623

Well, the comparison to APM is interesting, but completely irrelevant. Other than the fact that both companies were once high flyers, their businesses have nothing in common. And if you think APM will eventually come back, you are mistaken. They will never come back. They are behind the technology curve in a no margin business (disk drive heads), with essentially no customers. The only worthwhile asset in the company is its stagnant manufacturing capacity for MR heads, and with the glut of drives out there, even this is of essentially no value to larger player like SEG or QNTM. CIEN on the other hand, is ahead of the technology curve, and has technology coveted by at least two companies, TLAB, and presumably CSCO. And likely others as well. They just need to come to grips with the fact that they need to align with a larger player in order to effectively compete, and not be so susceptible to the loss of a contract or two. A month or two languishing in the low to mid teens will help them reach this conclusion. Then the company will be actively shopped and sold. On the first bounce, I will likely hedge my position with some cheap puts just in case things get even uglier than I expect. Although the pain is not too severe yet, it hasn't been fun. gary