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Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: Thean who wrote (10646)	11/22/1999 1:17:00 PM
From: SJS	Read Replies (1) \| Respond to of 14427

Thean, Looks great on paper, but please check those tax implications again. That would be too easy to generate ST losses against future LT gains by doing this repeatedly... irs.ustreas.gov GNSS made a nice move. Great call again on the 17 bounce. However I think it will keep bouncing down there.... Might be good for a trade on that bounce. Here's one to think about if you want to learn the fundamentals of arbitrage. It has to do with JDSU and OCLI. If you didn't know it, JDSU is buying OCLI. The agreement provides for the exchange of 0.928 shares of JDS Uniphase common stock for each outstanding share of OCLI. That means that if JDSU stock is at 223, each share of OCLI should be at 206.94. Since OCLI is trading at 191, that's about an 8%ish discount to the value you'll get. Of course that's the risk that the deal won't go through, and the time value of that risk. However (and you'll have to decide for yourself....) I think that the risk is miminal that this merger won't happen in Q1, 2000. So......if you want to own JDSU, you can do so at a discount by buying OCLI and holding OCLI till JDSU calls it and gives you .928 shares of JDSU. You make an additional 8% if the deal goes through. Have fun guys. Do you own DD on this, but that's the basics of the deal without having to SHORT JDSU. Steve