CALDEIRÃO DE BOLSA

Wednesday, January 12, 2005 9:44 a.m. EST


Dear Subscriber to TheStreet.com Stocks Under $10,

Ciena (CIEN:Nasdaq) received an upgrade after the close
last night when Goldman Sachs upgraded shares of the
telecommunications-equipment company to neutral from sell
in concert with its upgrade of the telecommunications
industry to attractive from neutral. We aren't taking any
action on the Goldman call, but given the analyst's target
range of $3.60 to $4 per share coupled with the secular
growth story in the sector, we believe further revisions
are in the works from Goldman and other shops. Shares were
recently trading 11 cents higher at $2.96.


We made many of the same points the analyst raised in the
note when we added the stock to the model portfolio on
Monday. We expect cash burn to decelerate ahead of plan,
new contract wins to come in thanks to its acquisitions,
and we see the potential for some of the 27 analysts who
currently rate Ciena shares either sell or hold to upgrade
in the coming months given our belief that the stock has
16% to 33% upside potential in 2005. We will add more to
this stake if shares trade below $2.80 a share, and in
this market we wouldn't be surprised to have the
opportunity present itself sooner rather than later.

Ciena upgraded on expectation of rev. ramp in 2005 (CIEN)
By Tomi Kilgore

NEW YORK (CBS.MW) -- Ciena Corp. (CIEN) was upgraded to "in line" from "underperform" by Goldman Sachs on the belief that revenue momentum should build in 2005 and that gross margin will continue to improve. The stock was trading up 14 cents, or 4.9 percent, at $2.97 in Instinet pre-open trading. The upgrade is also part of a communications sector upgrade to "attractive" from "neutral," in which Goldman told clients that it expects momentum in consumer devices and corporate networking to contribute to spending by the sector's major customers. For Ciena, Analyst Brantley Thompson sees the potential emergence of a $150 million to more than $200 million revenue opportunity in the corporate market, $100 million or more in new contracts for its switching products from wireless carriers and a push into Asia.