SDL, Inc. [Nasdaq: SDLI] Message Board

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Technology Stocks : SDL, Inc. [Nasdaq: SDLI]

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To: Guy Gordon who wrote (2323)	7/23/2000 11:01:53 AM
From: Wyätt Gwyön	Read Replies (1) of 3951

Doesn't that make SDLI awfully dangerous to hold right now? The stock is up on both the takeover premium and the S&P500 addition. If the deal were to all through for regulatory reasons the downside could be horrific. I am not too worried about the potential downside. SDLI has a takeover premium and JDSU has a market premium. Essentially the takeover premium is JDSU's way of aligning SDLI with JDSU's own market premium. It has become clearer with each passing day that JDSU deserves no market premium over SDLI. If the merger falls through, the narrowing of the JDSU/SDLI market premium gap should make up for the loss of takeover premium over an appreciable length of time (i.e., 3-6 months). Any short-term gap-down in SDLI could present a great buying opportunity. The S&P addition for JDSU is also a one-time, non-fundamental event which will skew things short-term, but should moot out over the long term.

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