OT-JDSU/Fiber-Optics: Brian, I will have to confess that I also own some JDSU. Average price is 23. Bought too early, but I don't have much of it.
Is is just me, or are these fiber optic companies somewhat beyond comprehension? I am referring to both the industry, with the telecom problems and all, and the movement of the stock prices. This was once the place to be, for the long term, and JDSU was described as the "Gorilla in the Midst" (think it was in Fortune), with respect to the fiber optics industry. A lot of funds owned it. The earnings growth rate was incredible for years. Even now, Jubak on MSN has it in his "Future Fantastic 50 Portfolio", and rates it as a buy:
moneycentral.msn.com
Also JDSU is listed in the Briefing.com growth core portfolio. Mary Farrell of Paine Webber (on WSW show) was recommending JDSU earlier this year at around $50/share or so (she stopped recently for some reason - go figure). Smart Money magazine recommended it in February at about $50/share:
From the article, 2/6/01: ..."I added JDS Uniphase to my own portfolio after recommending it last year, and I continue to recommend it now that uncertainty about prospects for the SDL acquisition has been significantly reduced. At a recent price of $50, JDS is less than a third of its 52-week high of just over $153, and represents an even better bargain than when I first recommended it. While the economic slowdown has clearly reached the fiber-optics sector, when the turnaround comes, JDS is likely to be a commanding presence."
JDSU is also in the Red Herring portfolio.
Here is an interesting, upbeat article which argues that the turn in telecom will be sooner rather than later:
yahoo.smartmoney.com
I don't know what to make of all this. Am I just having some bad dream, or is this for real?
John |
