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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: flyboy who wrote (4213)	9/18/1998 11:43:00 PM
From: flyboy	Read Replies (1) \| Respond to of 119973

Like CIEN as a buy out... From WSJ interactive On-Line Investors Speculate Ciena Will Find A New Buyer By Carrie Lee, The Wall Street Journal Interactive Edition NEW YORK -(Dow Jones)- The proposed marriage of Tellabs Inc. and Ciena Corp. is off, but on-line investors are betting that Ciena - despite its flaws - will attract another suitor. The deal between Tellabs and Ciena collapsed Monday, after weeks of speculation that it would be shattered by troubles that beset Ciena in the months after the pact was first struck. Its earnings prospects darkened as the company lost out on a key contract with AT&T Corp. and its stock plummeted. But participants in on-line message boards still see value in Ciena, a Linthicum, Md., maker of telecommunications network gear. They expect another company to step up with an offer for the company. And Wall Street analysts agree. Many believe Cisco Systems Inc. (CSCO) may be the one. Officials at Cisco, a San Jose, Calif., networking giant, declined to comment, citing company policy against discussing rumors or speculation. Ciena, for its part, said it wasn't involved in any merger discussions. "Our plans are to stay independent right now. We haven't talked to anyone," a company spokesman said. "We think our business is strong, bandwidth demand continues to grow, we have a strong balance sheet with over $200 million in cash, a bunch of satisfied customers and strong manufacturing facilities." But to many on Internet message boards and on Wall Street, those are all good reasons to believe another deal for Ciena will emerge. "Ciena has great products, customers and research and development. It makes them look pretty attractive," said Bill Rabin, an analyst with J.P. Morgan Securities Inc., in New York. Ciena's products are used by telecommunications companies to boost the capacity of their fiber-optic networks. Its customers include Sprint Corp. (FON), WorldCom - now MCI Worldcom Inc. - (WCOM), Bell Atlantic Corp. (BEL), and Cable & Wireless PLC (CWP). Joseph Nyi Nyi, an analyst at Gilford Securities, in New York, said Ciena would fit nicely with Cisco, whose primary business is in so-called routers, switches that direct data traffic on computer networks and ordinary telephone lines. "Cisco doesn't offer increased bandwidth [products], so [a Ciena acquisition] would make a nice niche market for them," he said. "Strategically, [an acquisition] makes sense for a lot of companies. Cisco is one," added Steven D. Levy, an analyst with Lehman Brothers Inc., in New York. "Increasingly, Cisco is going to find that the Ciena product sits right next to them in the phone networks, they end up connecting to them... Ready for a strong run up! C I A O