Pat,
1. I did not intend to communicate that I think JDS is an internet stock. It seems to me, however, that JDS's price has gone gaseous (not as much as those baseless-hype internet stocks though). I am not sure how this stock can sustain a 70 multiple. This seems to me to be way out of line with history for this and the sector of high-techs in general.
2. Growth potential for the fiber optics sector over the next period appears to be very, very strong for all the reasons that have been discussed here. That is one of the reasons I bought JDS. However, as I wrote previously, very few companies ever sustain the growth of JDS over a longer period of time. This includes the best managers in the best industrial sectors. I may be mistaken but some of the sentiment in this thread is that JDS is a good buy at current prices because it has such a huge growth rate. But it would be very unusual for JDS to be able to sustain the rate. So, that makes the logic of "good buy at present...." suspect.
3. I wonder where those emotionally stable share owners are right now. It appears the momentum players are waxing grand.
All this is somewhat academic and rather enjoyable, though, for those who built their postitions at much lower levels.
(BTW, I have always read your posts with interest--good suff even if we differ on some points.)
Ciao,
David Todtman |
