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

To: Bald Man from Mars who wrote (3411)	9/21/1998 3:41:00 PM
From: MThree	Read Replies (1) \| Respond to of 12623

Assuming CIEN decides to go it alone, in the worst case scenario -- where price wars force CIEN to lose money on its operations -- how soon will it be before they deplete this $200M cash and start needing to raise additional capital either through a debt offering or a secondary equity offering? The answer to this is crucial because a company can ignore its depressed stock as long as it does not need to raise additional capital. In the event that operating results for CIEN get even worse than its most recent pessimistic and conservative projections and it finds itself needing to raise additional cash to fund its operations, then its depressed share price becomes a self-fulfilling prophesy that impedes the company further from turning around. To anyone on the board who is knowledgeable on financial analysis as well as the economics of CIEN's business -- in light of the news that WDM could become a commodity fought on price wars -- I welcome your input. Thanks in advance.