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Ciena Corporation Message Board

  • red_iguana27 red_iguana27 Jan 7, 2000 5:22 PM Flag

    What happened to Ciena in late 1998...

    Hi, I'm new to this company and was looking over
    its long term chart and saw that rather frightening
    plunge in its stock price in the later months of 1998.
    Can someone fill me in on what happened there and
    what's been done to restore investor confidence that it
    won't (hopefully) happen again?


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    • but basically it's the thing that I've been
      railing about, in triumph & savage humor, all day long

      Short version: it was widely expected in "98 that Cien
      would be selected as a supplier by AT&T. During the
      spring-summer of "98, CIEN also had agreed in principle to
      merge with Tellabs (TLAB). The merger was well
      received, and both stock skyrocketed -- CIEN to the

      The day that the merger was to be voted on, Nettles,
      our ceo, received a phone call from T to the effect
      that it would not approve CIEN as a supplier after
      all. Nettles was obligated to inform TLAB, and the
      vote was postponed.

      Ultimately, the terms of
      the deal were renegotiated and the deal was called
      off. Not so coincidentally, LU, a former division of
      T, was staunchly opposed to the merger. It is widely
      accepted that T did LU's bidding in blowing up the merger.
      In fairness, CIEN also had some difficulties with
      other customers at the time.

      What's changed?
      Very simple. CIEN has dramatically expanded its
      customer base, making it far less susceptible to the whims
      of any particular customer.

      Do your own
      research, however. I think CIEN is the technological
      leader, but it is competing against giants. In the case
      of Nortel, a formidable giant. In the case of
      Lucent, a wounded -- and corrupt -- one. Good luck.

    • Go, CIEN!!!!!!!!!!

19.93-0.19(-0.94%)Oct 21 4:00 PMEDT