An Outsider's Guide To Inside Investing
Of all the stocks to crash this summer, perhaps the most horrifying was Ciena, the fast-growing maker of fiber-optic gear. After unveiling plans in June to merge with another hot telecom outfit, Tellabs, Ciena went from less than 58 before the news to more than 92 on July 20. Then trouble hit, first in the broad market's retreat, next in the defection of a key client, AT&T. By Aug. 21, the day shareholders were to approve the merger, Ciena had nosedived to 26 1/4. Three weeks later, Tellabs scotched the deal, and Ciena plunged to 12 1/4.
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