SDL, Inc. [Nasdaq: SDLI] Message Board

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Technology Stocks : SDL, Inc. [Nasdaq: SDLI]

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To: Guy Gordon who wrote (2323)	7/24/2000 12:50:15 AM
From: djia101362	Read Replies (1) of 3951

Guy, you are absolutely correct. I think you'll find a more balanced response to the merger on the JDSU board. Nobody here is willing to admit SDLI has substantial downside risk if the merger were to fall through. There is probably a good chance that it will go through but until the deal is finalized, you just never know. I'm not the only one that feels this way but many think SDLI could drop over 100 pts on a failed merger; now with the S&P boost, that drop could get closer to 150 pts. The articial boost due to JDSU's S&P inclusion will only give JDSU price stability on a failed merger, SDLI would lose every single point attributable to JDSU's S&P run along w/ much of the merger premium. But again, that is a big if. If you think the merger is a done deal, then don't sweat it. I think the expansion of the merger discount over the past few days tells you that the S&P runnup adds risk to SDLI. I would not be surprised to see the discount expand the higher JDSU goes. An aggressive investor might consider swapping JDSU for SDLI if that happens. Disclosure: I own both JDSU and SDLI.

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