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Technology Stocks : JDS Uniphase (JDSU)

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To: t2 who wrote (10202)5/11/2000 8:09:00 PM
From: lifeisgood  Read Replies (1) of 24042
 
If that merger goes through, this stock will rocket in a recovering Nasdaq.

I don't understand why people keep asserting this besides wishful thinking. This assertion is based on the premise that approval of the merger would be such a big surprise that investors couldn't help themselves but go into margin debt to buy more. If the merger isn't already built into the current price, then JDSU investors haven't been paying attention. Everyone and their brother expects this merger to go through.

I would venture the opinion that if the merger goes through (as expected and as repeatedly stated by JDSU management), we'll see a small though temporary pop (might even see a decline as the JDSU price "catches up" to ETEK swap price- everyone assumes ETEK will go up BUT JDSY might just as well go down). If merger fails to go through, we could easily fall to the 50 - 60 range in a declining Naz market.
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