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Technology Stocks : JDS Uniphase (JDSU)

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To: Larry S. who wrote (2465)12/1/1999 9:56:00 PM
From: Guy Gordon   of 24042
 
RE: "...buying OCLI to get JDSU seems like a no-brainer."

We've discussed this on this thread. Yes, if you buy OCLI now, and the deal goes through, you will get your JDSU shares at a discount. But it is not a no-brainer.

You are being offered that premium for a reason. Part of it is the time-value of money. But a bigger part is the possibility that the deal will not go through. OCLI jumped 50% when the deal was announced. It would not be surprising for it to fall 33% if the deal failed. That is the risk you face owning OCLI right now.

Someone else pointed out the (small IMHO) countervailing possibility of a higher offer for OCLI from a third party.

Not saying you shouldn't own OCLI. Just saying be aware of the risk. TANSSAAFL.
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