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Technology Stocks : JDS Uniphase (JDSU)
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To: Wyätt Gwyön who wrote (11281)7/11/2000 6:47:48 PM
From: t2  Read Replies (5) of 24042
 
Once people figure out how kick-ass SDLI is, I think they will realize JDSU is getting a good deal and the stock will start to move again.

MM, I agree with you.

Would you trust a management that has taken JDSU from a small company to one of the biggest market caps OR would you trust some mutual fund manager that thinks they overpaid. Some of these so-called experts get way too much credit for their ability to determine the right price for the acquisition.
One should look to the pioneers of the industry (ie SDLI/JDSU management) for what is the right price for the deal. This is not your average deal that ones finds in the oil or cyclical stocks etc..

Mucho, For all we know JDSU might have gotten a steal in SDLI. Surely, when the examined the books of SDLI, its collection of patents, and possibly future pipeline---it is likely that they determined it was a good deal. If this was a hostile takeover, there could have been a chance of "overpaying". The fact that the talks were initiated by the CEO of SDLI, is another sign that they arrived at a reasonable price.

Once the stocks start moving this talk of overpaying will be drowned out by those of us who think the fibre optics industry knows what is a fair price.

One has to wonder why Corning would have been interested in SDLI, a stock with a very high PE. I think the deal did not get done for similiar reasons as we saw in the internet sector a couple of years ago. Traditional companies with lower PEs could not make the deals in the sector and Corning still has a normal PE along the Cisco, NT range. I think they also realized how good a company SDLI is but just could not make the deal thanks to currency differences. Actually that should make Corning a screaming buy but that is another matter.

BTW--I am just kicking myself that I had not bought SDLI a few weeks ago to add to my holding of GLW and JDSU.
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