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Technology Stocks : JDS Uniphase (JDSU)

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To: Guy Gordon who wrote (6031)	2/6/2000 9:59:00 AM
From: steve mamus	Read Replies (1) of 24042

Excellent questions...however what is the downdraft for ETEK in particular if deal falls apart. I would expect a one day drop in ETEK minimum of 25-30%. Irrespective of all other considerations I was wondering what the perceived hit would be to ETEK if the deal fell apart (i.e.Supposed the deal fell apart; how much of a fall would one expect in the stockprice of ETEK within 72 hours of such an announcement - anyone? Whatever you guess I would double it if there are bad market conditions. I also think that JDSU would take a big hit if deal fell apart). As a point of reference I am long both ETEK and JDSU and have sold puts aggressively on JDSU. I have kept my position much smaller in ETEK then I would like due to the 20% arbitrage position. I have also discussed this with my broker and his response "THE PEOPLE ON WALLSTREET ARE NOT STUPID, THERE IS A REASON THAT THERE IS A 20% SPREAD". He has suggested to me to avoid the temptation to load up on ETEK. He is a major bull on ETEK. How serious are the regulatory concerns?? These are my major concerns. Are there DOJ anti-competitive issues at play here- is JDSU a MSFT-wanabee??

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