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Technology Stocks : TLAB info? -- Ignore unavailable to you. Want to Upgrade?

To: John Carragher who wrote (4042)	10/10/1998 11:56:00 AM
From: Dave Dickerson	Read Replies (1) \| Respond to of 7342

To all-Some reasons for an optimistic outlook for Tellab's. 1.It has a relatively low PE (19) for it's group. Lucent(34),N. Telecom(37) etc.All telecom eqt. cos. average PE of 34. 2.Statements from Tellab's I.R. on 10/7/98 that mgt. is comfortable with $.46 this quarter and affirmed pre-revised estimates for FY 1999 and 2000. 3. Reports from a supplier to Tellab's that orders are 10 mill. vs about 6 mill. last year. 4. Bulk of Tellab's business is in US, Europe,Canada (about 80%) 5. " Telecommunications carriers around the world will require sophisticated optical networking equipment to meet future demands for interactive voice and data services," said Tellab's ex-IBM optical team expert Dr. Paul Green. " Tellab's will be in an ideal position to bring new, innovative technologies to the market" 6. Tellab's PEG ratio is around .5. Lower than 1 is excellent. Adc Telecom is 1.32, N.Telecom is 1.85. You derive this ratio by taking the PE ratio and dividing by the % of growth of net income for the next year. 7.The World Bank,IMF, G-7 nations , individual countries like Japan, and other world leaders are working hard on putting out the global financial fires and restoring confidence. 8.IMHO the price of Tellab's bottomed at $31, which was a great drop of 60% or so and we will slowly build strength from here.More than half of this drop,stemmed from Ciena mess. 9.The thing that will help pull Tellab's up is real growth in net earnings and a return to a more normal PE of 30-35, historically it's PE has ranged from 12-45. 10. Look at the 30 analysts that follow Tellab's in depth, 14 say it's a strong buy, 13 say it's a moderate buy ,3 say to hold it and NONE say to sell. Hang in there, this aggie knows that cream will eventually float to the top, no matter how hard the 10 gallon milk can has been shook up. DAVE DICKERSON