An ADR under FUWAY.
A few thoughts....
I doubt NT or LU will buy SDLI. They would pay a huge premium with limited return. It would limit SDLI's market by their ownership. Their fiber competitors would prefer to buy from others(JDSU!!!).
I think a TYCO, ALA or a foreign electronics firm are more likely suitors. Additionally, unless the suitor already has passive components, it won't be much of a threat. Over 30% of JDSU's products are now modules. However, a merger should be no surprise, SDLI must feel a little isolated out there. They certainly don't want to be the Bellsouth of FO.
Forget the LUMM's, Nanovation's, Silk Road's and the rest of the hoopla. No products, no customers. Due to the high stock price I was complaining about a couple of days ago, JDSU has leveraged it to buy any potential threats.
Earnings were so good this quarter, the downside from here shouldn't be more than 30 points at best. I am reading estimates that JDSU controls 70% of the FO component market with the addition of ETEK. The trip to the woodshed should be quick and relatively painless. The upside is a few hundred points plus a split.
Relax and enjoy the ride. Try to be as graceful riding them down as you were riding them up. David's views are a valuable part of the thread, and fortunately he has a good sense of humor.
Cheers,
Kent |
