JDS Uniphase (JDSU) Message Board

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Technology Stocks : JDS Uniphase (JDSU)

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To: t2 who wrote (11602)	7/20/2000 11:43:30 PM
From: Warren Gates	Read Replies (1) of 24042

Currently the market is valuing the combined ETEK, JDSU and SDLI at about $160 billion, roughly as much as the market peak in March. So what has happened since then, FO companies like GLW and NT have broken to new highs, 2 outstanding quarters from SDLI, 1 great quarter and another 1 coming from JDSU/ETEK, a few more aquisitions that are paying off. The market gives a premium to the leaders and a lot of them are starting to break out. No reason not to give it to JDSU/SDLI. After all, the merger of the 3 was something on everybody's wish list to begin with. With the S&P addition, another twist is added to the merger. You could just stick it out with SDLI and assume more risk if the merge falls apart in exchange for an extra 10-15% return. Or stick it out with JDSU. If merger falls apart JDSU gets $1 billion and recovers what it was 'lost' since the announcement. If merger gets approved, JDSU gets a pop because S&P fund will have to buy extra JDSU shares, $40 billion worth assuming SDLI closes at that estimated level. Probably will be closer to $50 billion when the smoke clears.

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