SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : SDL, Inc. [Nasdaq: SDLI]
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: pat mudge who started this subject7/26/2000 2:31:23 PM
From: djia101362  Read Replies (2) of 3951
 
The discount in SDLI shares now stands at 32%. The day before JDSU's S&P announcement, the discout went as low as 11%. I didn't think we'd see the discount over 25% but I did expect the widest margin to be at or near today's close.

I think the street is saying if this merger doesn't go through, SDLI falls like a rock. Today is the ideal opportunity for an agressive JDSU investor to sell JDSU and buy SDLI.

Could see some narrowing of the spread starting as soon as tomorrow. Once the artificial S&P buying subsides, the arbs may start establishing new positions.

Unfortunately, the way I see the spread narrowing is by JDSU coming back down and SDLI going down less. Hope I'm wrong since I own a bunch of SDLI. It sure would be nice to have those JDSU shares right about now.

Anyone think NT's Roth comments had anything to do with the weakness in SDLI? Roth said in yesterday's NT CC and again on CNBC this moring that NT is concerned with the recent consolidation in the industry. He also he will be deciding in the next few weeks whether NT will back the merger or not. Roth said that NT was in favor of the ETEK/JDSU merger.

IMO, under current market conditions, SDLI would be at about $325 w/out the JDSU merger announcement. That means that $60 of the current price is attributable to the merger. Therefore you have downside of about 15% at a risk of making an additional 30% if you were to establish a new SDLI postion today.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News