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Technology Stocks : Advanced Fibre (AFCI) ** IPO -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (1338)	12/9/1998 9:23:00 PM
From: Danny Chan	Respond to of 3299

Good job on the research. Thanks.

To: E_K_S who wrote (1338)	12/9/1998 10:45:00 PM
From: SteveDavis	Respond to of 3299

Eric, That was great research as you did a ton of work and good deductions with the various facts. I am long 2K of AFCI and thinking seriously about more at this point. Tellabs is certainly going to buy someone or two. Again, thanks for your work. Steve Davis

To: E_K_S who wrote (1338)	12/10/1998 12:39:00 PM
From: riposte	Read Replies (1) \| Respond to of 3299

TLAB/AFCI History. Hi Eric - I e-mailed Tom Scottino at TLAB's Investor Relations this morning. He zipped and e-mail right back, saying that TLAB had indeed sold off parts of their position in AFCI in 2Q98, and 1Q97. Looking at TLAB's 2Q '98 report: [TEXT DELETED...] And now for the explanation: During the second quarter of this year, Tellabs realized a sizable pre-tax gain on the sale of stock held as an investment, pursuant to a planned program to reduce its holdings in Advanced Fibre Communications, a company in which we had made an early investment. The gain from the sale of the AFC stock amounted to $73.4 million. [REMAINING TEXT DELETED...] From TLAB's report 1Q report in 1997- it's not so obvious, but, armed with the knowledge provided by Tom: [TEXT DELETED...] Included in 1997 operating results is a pre-tax gain of $20,803,000 on the sale of stock held as an investment. After tax, this resulted in a gain of approximately $13,855,000 or 7 cents per share. [REMAINING TEXT DELETED...] FULL TEXT @ tellabs.com BTW, I've never understood why TLAB would want to reduce its stake in AFCI. I've always thought, that, if anything, the opposite made sense. Hope this helps. Steve