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<<First, I've got to admit that this is the one that I know the least about. I picked it because it intrigued me and because I think telecom is an important part of the future.

Tellabs -- According to my calculations from the most recent 10Q, they pass all the numerical CK criteria, other than the flow ratios.

Gross Margin -- 63.3%
Net Margin -- 20.8%
Leveraged Flow -- 1.55
Unleveraged Flow -- 1.55
Cash/Debt -- 210.7>>

The only reason I left this off my list was the flow ratio. I had thought it was 3.3, but I forgot to include the short-term investments as cash. Phil's number's are right, and this make Tellabs a much more credible candidate.

Tellabs is setting itself up to be a key player in the coming expansion of the coming explosion in internet bandwidth. This promises to be a hypergrowth market and it is one that the CK portfolio would do well to invest in.

Al
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