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

To: lebo who wrote (3715)	9/24/1998 8:06:00 PM
From: Doughboy	Read Replies (2) \| Respond to of 12623

If someone goes in to buy Ciena, isn't it true that they get to open up the books? Why can't a buyer (CSCO) take a look see, make a good judgment whether the earnings for '99 look like .20 or 1.20, and then decide to make a play or not. What's the harm in that? I guess I don't understand why a buyer should wait until things "settle down." It seems to me that at that point the public will also have a grip on the earnings outlook and the share price will presumably reflect that fair value. JMO

To: lebo who wrote (3715)	9/24/1998 8:13:00 PM
From: Doug Moulton	Respond to of 12623

lebo, I agree that diluting earnings is a hard sale to the shareholders and I don't know enough about the technology to know if someone else can just build it themselves in house. However, since LU is still 9 months behind it seem that if CSCO or ASND bought CIEN they could push to get their foot in the doors using their superior sales force before LU caught up. I think CIEN will eventually be bought, but I think it is going to be at a lower price because CIEN already realizes it can't go it alone because it doesn't have the relationships that it needs with the ATTs of the world. They can't fight LU alone and therefore they are going to have to be bought to stay viable. Again, just my thoughts. Doug