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Technology Stocks : JDS Uniphase (JDSU)
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To: jack bittner who wrote (8970)4/16/2000 10:27:00 AM
From: jmanvegas  Read Replies (2) of 24042
 
One of the problems with JDSU and the industry in general is they're not automated. They're very labor intensive and as they grow, the difficulty arises in finding qualified and expensive technicians. This has been one of the main reasons for their buying binge. There are only a limited amount of people floating around in this industry.

That's why I make the argument for SDLI over JDSU as an investment even though SDLI is even more volatile than JDSU. Now I own both, but IMHO, SDLI will way out-perform JDSU over the next couple of years. They dominate the underseas market which is a much higher margined business. Their much smaller market cap & float is advantageous to the investor. And they should be viewed as an acquisition target even though they deny that as a corporate strategy.

When JDSU was at a $90B market cap, I was thinking that there's no way that JDSU is going to double and become a $180B company over the next year or so. That would be ridiculous from my perspective based upon their bottom line. They're now getting chopped down to more reasonable levels as is everything else. You have to start comparing market caps between companies even though they may be in different tech segments. Example: compare JDSU vs EMC. The market is rationally realigning this right now.

jmanvegas
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