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


To: Guy Gordon who wrote (2613)12/6/1999 6:10:00 PM
From: t2  Read Replies (1) | Respond to of 24042
 
Guy, No, but I can imagine them waiting for a while. They would really hate to add JDSU because it's market cap was way up there, only to see it fall back. Neither you nor I think that will happen, but S&P can afford to be cautious and wait.

They can wait a bit longer but i doubt they will. Part of their selection criterea is to identify emerging industries. This is an emerging industry.
Now they have a company with a much higher market cap than other companies that are not in the index. For a while I thought that the biggest reason for the delay may have been the short time since the merger of Uniphase and JDS. However, that does not seem to be a factor in their decision making (or at least it is a minor one). Again, to me the Yahoo addition really makes JDSU a sure thing in the very near future and JDS is no internet company.

Same deal on the stock split. Contrary to speculation on this thread, there is no reason at all for the board of JDSU to consider increasing the 2:1 split scheduled to be voted on at the next meeting. The prudent, cautious, and proper action is to pass the 2:1, and then wait 3-6 months and do it again.

I agree with you on the stock split. There is no need to split again so soon after this month. I prefer the stock splits that require the shareholders to increase authorized shares (longer process) instead of the ones which are usually announced and the split occurs about a month later. It tends to keep the stock in an upward trend for a longer period of time.If one is a long term holder that is the best way to go--steady gains.
At this point i am more of a trader on this stock than a long term investor---ie holding 50% in this stock alone. As a long term holder, the maximum i would hold in one company is 25%.