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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: MileHigh who wrote (863)	8/26/1999 5:48:00 PM
From: Chris Stovin	Read Replies (1) \| Respond to of 24042

Thursday August 26 4:35 PM ET JDS Uniphase Soars On Major Deal In Sector By Susan Taylor OTTAWA (Reuters) - Stock in fiber-optic equipment developer JDS Uniphase Corp. shot to new highs Thursday after Cisco Systems Inc. (Nasdaq:CSCO - news) said it would pay $7.4 billion for two firms likely to buy JDS products. Shares in JDS Uniphase, the result of a June 30 merger between San Jose, California-based Uniphase Corp. (Nasdaq:JDSU - news) and Ottawa-area based JDS FITEL Inc., rocketed up in heavy trade Thursday. The stock jumped to a high of C$181 before pulling back to close up C$5.05, a gain of about 3 percent, to C$173.55 on the Toronto Stock Exchange. On the Nasdaq, the issue finished up $2-15/16 at $115-1/2, off an earlier 52-week peak of $120-7/8. The previous high in Toronto was C$168.50 and on the Nasdaq the previous high was $112-1/2. JDS, the No. 1 maker of parts for fiber-optic equipment in phone networks, sells passive components that boost network capacity and active components that push large volumes of data along the networks. Cisco said Thursday it would buy two privately held data networking firms, Cerent Corp. and Monterey Networks Inc., in an all-stock deal valued at $7.4 billion. ''It may mean that there's a more powerfully capitalized customer for them (JDS) to sell their wares to,'' said Mark Lucey of Kearns Capital in Toronto. The Cisco deal also demonstrates the value of firms working in the fiber-optic market, analysts said. ''It raises the bar and lifts the floor on the valuation of these companies,'' said one market watcher who declined to be named. ''It's hot. This is as hot as it gets,'' said an analyst who asked not to be named. ''The stock is trading at more than 100 times this year's earnings expectations.'' Other players in the fiber-optic market also made major gains Thursday trade, including E-Tek Dynamics, up $6-1/2 to $59-5/8, and SDL Inc., up $10-3/16 to $90- 1/8. ''All the components companies are up,'' said Patrick Houghton, analyst at Sutro & Co. in San Francisco.