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Technology Stocks : JDS Uniphase (JDSU)

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To: Master (Hijacked) who wrote (3705)1/4/2000 7:20:00 AM
From: Lee  Read Replies (3) of 24042
 
Master,..Re:.I had lived a disastrous experience with DELL last February when a stock split was used to cushion their lower than expected results

Exactly my concerns when I expressed reservation about an additional split. Not only because of the dilutive effect but also because of the larger float. Once Dell split the last time, it moved sideways the rest of the year, and although some of the price movement could be attributed to changes in investor preferences, it became more and more difficult to get explosive moves underway on good news because of the float.

If we look at the likes of MSFT and others with a float over 3 billion shares, we can notice that gains are now hard won even on good news and no change in company fundamentals. Alternatively, if we notice some of the smaller new tech companies with floats as small as 20 million, they manage to display eye popping gains on any good news. <g>

From all I've read though, JDSU has the potential to continue explosive growth for several years to come, and if the recognition of this technology is widespread enough, maybe the float won't hinder price appreciation. <g>

Cheers,

Lee
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