JDS Uniphase (JDSU) Message Board

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Technology Stocks : JDS Uniphase (JDSU)

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To: Guy Gordon who wrote (7841)	3/18/2000 12:04:00 AM
From: SJS	Read Replies (1) of 24042

Guy, My numbers aren't incorrect if you use the INTRADAY low, which is what I quoted. The spread between E-Tek shares and their value in the stock swap opened to nearly $60 per share, or 30%, in trading early Thursday. The NAZ selloff had NOTHING to do with it. I am positive of that. VERY positive. It was that rumor and that seller. 1) Arbs not keep up? Are you kidding? Arbs have NO problems keeping up with the spread. Since both stocks are optionable, these guys just lock in delta hedge spreads to keep their stock relationship hedged. 2) Lack of shorting JDSU doesn't affect ETEK's stock price. A true arb relationship would be that they didn't want to BUY ETEK because they felt the deal wouldn't go. As well, with NO buying pressure and more selling pressure, the spread widens just as it did becauser to the sellers it looked like that the deal was in danger of failing. The spread will continue to shrink ONLY if the inside track says the deal looks more positive to current and future arbs.

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