Greg: No debate here w/r/t SDLI. And, fwiw, here's Jim Jubak's take as of today:
at the recently concluded Optical Fiber Communications conference in Baltimore, SDL introduced new products for OC-192 optical fiber networks and two new optical amplifiers and new power pump modules for dense wave division multiplexing, all of which are among the hottest areas of the fiber network market. But at the same conference, JDS Uniphase introduced 30 new products, including OC-192 modules and dense wave division multiplexing components for 80-plus channels. JDS Uniphase certainly seems more aggressive in this space. But before I dumped SDL or traded SDL for JDS Uniphase, I'd want to think about the relative valuation of these two companies. At $100 billion against SDL's $14 billion in market capitalization, JDS Uniphase is about seven times larger. Adjusting for relative size, the two companies' different numbers of product introductions are about equal in their potential effect on future valuations. Before I made any buy/sell/hold decision, I'd also take a look at the growth rate of the market in which these companies compete. Fiber networking equipment is about as fast-growing a market as I can think of right now. I certainly think there's a strong argument for overweighting this industry by adding JDS Uniphase to a portfolio that already contains SDL, rather than replacing one stock with the other. In fact, that's the strategy I'm going to pursue with Jubak's Picks. I'm going to hold SDL though the current volatility and hope I can pick up JDS Uniphase within the next 10 days or so.
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