JDSU/SDLI...
older hands here on SI are speculating that the fiberoptics companies are way overpriced, and the balloon will soon rupture, in the same way air came out of Qualcomm this year.
The fiber optics are expensive, because Mr. Market sees the enormous growth in them the next 4 years. Everything is overpriced when it falls, but there has to be a reason for JDSU to fall, not just opinion from Bears.
We can't really say if SDLI is overpriced, because its price now is a function of JDSU's price. SDLI is up, according to the chart I pulled up, over 7500%! the last two years.
Qualcomm's price fell, IMO, because it did not meet investors anticipation of early market dominance, and uncertainty over the strength of their patents.
For JDSU to fall, say 35% to 50%, which is what your optic Bears are predicting, would take, IMO, some bad news on sales and profits.
Can you see any bad news on sales and profits coming for JDSU? I can't.
Nothing is sure, of course, and, as William Goldman, the writer for the Movies, became famous for saying:
NOBODY KNOWS! |
