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URL:  https://boards.fool.com/tellabs-tellabs-tellabs-10204882.aspx

Subject:  Tellabs! Tellabs! Tellabs! Date:  6/12/1998  11:54 PM
Author:  vodkajim Number:  207 of 8329

Personally, I already own stock in three nominees, Dell, Cisco, and Tellabs, as well as in a current Cash-King stock, Pfizer. I used to own a lot of stock in GE, but sold it a few months ago to diversify among Dell, Network Associates, PeopleSoft, Compaq, Cisco, and Tellabs, respectively.

Dell has an extremely high ROE of 78% going for it. It is currently my favorite stock. I also have more money invested in Dell than any other stock, composing 1/3 of my entire portfolio. Dell has a projected long-term growth rate of 28%. It has about 1% long-term debt.

Cisco is also a great stock. ROE of 35%. Long-term projected growth rate of 30%. Cisco's CEO has twice recently giving warnings that it will not meet that 30% LT growth rate unless the Asia crisis gets better or new business opportunities pop up. It has no debt.

I vote for Tellabs because Dell, Cisco, GE and the others are already "popular" stocks. Everybody hears about them in the Motley Fool, on CNBC, CNNfN, Business Week, etc. Many of the nominees are consumer oriented companies with well known brand names. The reason Tellabs makes up the smallest percentage of my own portfolio is because I know less about it than the other companies I own. Nobody covers it in the press, but they will eventually if it keeps growing the way it is.

Tellabs makes telecommunications equipment, and it should benefit a lot from the growth of the Internet and telecommunications industry degregulation. Tellabs has a 30% projected long-term growth rate, about the same as Dell and Cisco. It has a ROE of 30%. Long term-debt of 2%. Its PEG is lower than Dell's and about the same as Cisco's. Unlike its famous competitor, Lucent, Tellabs is reasonably priced.
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