, I really don't understand why anyone would talk about 200 at this point. This sort of talk (i.e., 200, with no fundamental support for such a notion) suggests to me that JDS shares are part of the hi-tech internet bubble. When bubbles get big and stretched thin, any crisis--large or small--can lead to panic selling. Then, the power of emotions that drove the prices higher in the first place drive prices lower. Panic is a very powerful emotion and people do all sorts of unreasonable acts when in its thrall. Including, selling shares in companies like JDS at prices below what is sensible given the fundamental worth of the firm.
First of all, I question your belief that JDS is an Internet stock or even related to the gaseous high-fliers. The recent run-up was due to the Uniphase merger and not baseless hype.
Secondly, for a look at the growth prospects in the fiber optics sector, look at SDLI's earnings posted after the close today. DWDM sales up over 100% and conference call indicated they expect the same in '99. These numbers include no contribution from the Metro market that's just beginning and only 5% from submarine products.
I've followed JDS for over a year, now, and apart from this recent merger surge, it's about the most unemotional stock I own. From all I've seen, shareholders aren't easily panicked. To the contrary, most wait for momentum players to clear the field and say a quiet thank-you for any buying opportunity they're given.
Just my take.
Pat
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