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

To: gbh who wrote (3681)	9/24/1998 11:50:00 AM
From: Doughboy	Read Replies (2) \| Respond to of 12623

I absolutely believe that Ciena is at a bargain basement discount. Anyone who can put up with the short-term volatility will be rewarded with a stock that will be at 15-20 times forward earnings when the rest of the industry trades at 35-50 times. That's why I think CSCO would be wise to pick it up now before the crisis clears and Ciena pops back over 20 on its own. I think even with a very conservative view that Ciena will earn .75 in 1999 (while current estimates are averaging around $1.00) then the deal is accretive. Perhaps I was being a little too sanguine by saying that CSCO would offer up to .5CSCO, but .4 definitely is in the ballpark of doable for both CSCO and Ciena without damaging the shareholder value of either. The bottom line is--will CSCO dive if it acquired Ciena right now at around .5CSCO? No. Doughboy.