Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: still learning who wrote (5205)	11/3/1998 7:26:00 PM
From: mmeggs	Read Replies (2) \| Respond to of 12623

New contracts are worth more than a "buck or two". Consider the sell-off when it was announced that Teleport was going with Pirelli and would only use CIEN for part of its DWM equipment. It was only $100 mill over three years, and that is basically what tubed the merger the second time. Today we get an announcement that for one leg of a potentially huge, dumb, (as in all-optical) fiber network comparable to QWST, they shipped $23 million in equipment, and everyone yawns. Was it enough to justify 80% in a week? Maybe not. But if you don't think it should have been at $11 to begin with, we're just compensating for the overreaction. Would another contract announcement move it more than a "buck or two?" Assume it was a Bell. For a good portion of the equipment. Over Lucent. Granted, it isn't AT&T, but it would be significant. This company hasn't rolled over. It has technology that is in demand. If it canpick up a contract here, a contract there, it starts looking attractive as a buyout target again. BTW, there is no takeover anytime soon. Because CIEN repriced their options for employees, there is no pooling of interest mergers allowed for six months. Institutions know this kind of stuff. You don't do the kind of volume that it did over the last few days without big money. It wasn't on takeover speculation that these institutions moved in, ya know? So, I go back to my original point that there is something else out there. I guess we'll know soon enough. I've got QCOM short term options as well. Both the CEO of Ciena and Qualcomm are supposed to be on CNBC tomorrow. I think they'll have good things to say. Either tomorrow will be a bright, bright, bright, sunshiney day, or it will be a day marked "payback" by Karmic gods for some recent good fortune. Not that any of you really care. Good hunting, mmeggs