Ham,
My 2c on your point: if one is not day-trading or short term timing (e.g., days, weeks), then why quibble about a few bucks on this stock. Either the growth rate over the next 5 years is 20% -- 50% or not. If it is, then the present multiple reflects a clear bargain. Sure there will be price variations. In this stock, especially, since there was so much really dumb speculative fever. But in the long term, growth and value always win out. Always. And we've got that in our favour now with this stock. They only assumptions we have to be concerned about now are a) the management of JDSU is very good and b) the FO buildout will average 20% or more over the next 5 years. If these are incorrect, I'm toast even buying at this level. If correct, the company's earnings will have doubled in less than 5 years and the stock price will have followed. Heck, that ain't too shabby in my book. Especially by historical stock market standards. And presumably, history is relevant.
Ciao,
Hank Stamper |
