The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: carranza2 who wrote (37607)	8/2/2005 7:15:41 PM
From: Wyätt Gwyön	Read Replies (1) of 110194

i don't follow JDSU anymore. i used to follow the optical sector closely and sold out of SDLI after the JDSU buyout was announced. (my wacked-out theory at the time was that SDLI had big upside since it was only around 10-20x sales when JDSU was at 50x...it worked since SDLI tripled in the space of a few months from late spring 2000 into the summer, before beginning a long, slow descent down the 99% negative slope.) i certainly don't mean to imply they are a bubble stock now. after all, they traded as high as 150 i believe, so at 1.50 that is a 99% drop. since bubbles overshoot on the upside, it stands to reason they will overshoot on the downside. many Inuts were 10-baggers off their 2002 lows. i don't see where anybody can get the idea that hedgies are limited to 2:1 leverage. LTCM was leveraged 100:1, and in illiquid positions to boot.

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