Mile, I've known you awhile on the Qcom board and I don't think we have ever disagreed, so I apologize in advance for submitting a response to Joe Kernan this am. I have never done this before, but felt that misrepresenting JDSU's numbers by a truly enormous amount could not go w/o a response. They make errors all the time, but this was the worst one I can recall. I'll now let it go.
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Mr. Kernan,
You repeatedly referred to JDSU's revenues yesterday, and the number you used for their yearly revenues was actually the number for last quarter. Just one quarter. Today, you continue to make flip comments about optics and fiber companies. Mr. Kernan, you have a valid point about valuations, but you have used an absolutely awful example, comparing a company in a mature industry with little revenue growth, with a company with well over 100% revenue growth, whose management is guiding for this revenue growth to continue for many years. You must know that JDSU has a dominate position now, consolidating 3 of the largest companies in this industry into one, and the incredible compounding growth rate they are and will experience gives JDSU room to have a tremendous pe contraction, and yet the price will go up anyway. For example, if jdsu grows at 80% compounding for the next 4 years, and the pe contracts by 67%, JDSU's stock price will still go up about 3x. This is why Jdsu is where its at.
Mr. Kernan, Jdsu did 280 million last quarter, not last year. They will VERY likely do 1.5 billion this year. this is more than 5x higher than what you suggested repeatedly on the air to millions of people.It would be very appropriate for you to apologize for misrepresenting the companies revenues by this huge amount, don't you think?Your mistake is not one of opinion.
Eugene Kearney |
