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

To: Boplicity who wrote (2818)	12/10/1999 2:42:00 PM
From: t2	Respond to of 24042

I think the stock is about to make its upward move. A flurry of buying by the end of the day would be a great sign. If it does not, i still expect it to move up ahead of the shareholders' meeting. I don't know if much is going to come out of the meeting but even the expected approval of the authorized shares would be good enough to push the stock up. Upon the announcement hitting the newswires, we could attact some momentum investors very quickly resulting in one hell of a ride. good luck.

To: Boplicity who wrote (2818)	12/10/1999 2:43:00 PM
From: LBstocks	Read Replies (1) \| Respond to of 24042

JDSU: What Qtera Means For JDSU JDS Uniphase Corp(JDSU)* Rating: 1H Salomon Smith Barney ~ December 10, 1999 12/10/99 JDS Uniphase (JDSU $240.37,1-H,Tgt $210.00) Lissa Bogaty --SUMMARY:--JDS Uniphase--Connectors & Other Components * We believe companies like Qtera should create a huge market for: * Optical switches * High-powered source lasers * Pump lasers for Raman amplification * High-performance modulators * Passives to compensate for signal degradation * 980 pumps * EDFAs * JDS Uniphase produces or is developing all of these products. 12/10/99 JDS Uniphase (JDSU $240.37,1-H,Tgt $210.00) Lissa Bogaty --EARNINGS PER SHARE-------------------------------------------------------- FYE 1 Qtr 2 Qtr 3 Qtr 4 Qtr Year Actual 06/99 EPS $0.14A $0.16A $0.19A $0.24A $0.74A Previous 06/00 EPS $0.29A $0.31E $0.34E $0.36E $1.30E Current 06/00 EPS $0.29A $0.31E $0.34E $0.36E $1.30E Previous 06/01 EPS $0.39E $0.44E $0.48E $0.52E $1.83E Current 06/01 EPS $0.39E $0.44E $0.48E $0.52E $1.83E Previous 06/02 EPS $N/A $N/A $N/A $N/A $2.50E Current 06/02 EPS $N/A $N/A $N/A $N/A $2.50E Footnotes: 12/10/99 JDS Uniphase (JDSU $240.37,1-H,Tgt $210.00) Lissa Bogaty --FUNDAMENTALS-------------------------------------------------------------- Current Rank........:1H Prior:No Change Price (12/9/99).....:$240.37 P/E Ratio 06/00.....:184.9x Target Price..:$210.00 Prior:No Change P/E Ratio 06/01.....:131.3x Proj.5yr EPS Grth...:50.0% Return on Eqty 99...:N/A% Book Value/Shr(99)..:23.87 LT Debt-to-Capital(a)0% Dividend............:$N/A Revenue (00)........:1134.10mil Yield...............:N/A% Shares Outstanding..:179.5mil Convertible.........:No Mkt. Capitalization.:43146.4mil Hedge Clause(s).....: Comments............:(a) Data as of the most recently reported quarter. Comments............: 12/10/99 JDS Uniphase (JDSU $240.37,1-H,Tgt $210.00) --OPINION:------------------------------------------------------------------ COMPANIES LIKE QTERA THAT ARE EXPANDING THE APPLICATIONS FOR WDM SHOULD CREATE AN ENORMOUS NEW MARKET FOR FIBER-OPTIC COMPONENTS Data is inherently better transported optically than electronically because it is switched less frequently than voice, comes in many formats, protocols, and bit rates, and it demands bandwidth in an unpredictable manner. Therefore, some companies, like Qtera, are trying to figure out how to send it long distances without regeneration and route it and mux it by wavelength. In order to send signals over long distances without regeneration, many new techniques need to be perfected. Basically, you need: 1. Raman 2. Forward error correction 3 Return-to-zero coding schemes These will be supported by high-power, low-noise lasers and high-performance modulators. You will need just as many EDFAs, but you will also need Raman amplification, and we speculate that you could even see a shift in the ratio of 980/1480 lasers in the EDFAs toward 980s, which have less noise, especially if these can be cost reduced. As JDS Uniphase and SDL move down the learning curve, this would be a positive. There are pretty much only three companies that can make 980s, JDS Uniphase, SDL, and Corning. All are working on Raman, as well. When switching light by wavelength, you run into other problems: 1. Four-wave mixing 2. Chromatic and polarization-related dispersion 3. Unequal gain 4. and others Lots of passives to compensate for these issues will be needed, such as dispersion compensation modules and dynamic gain equalization modules and monitoring equipment. The switches, we believe, could be a huge market. Corning believes that the market for switches will equal the size of the EDFA module market within a few years. JDS Uniphase has many of the skills necessary to create optical switches. In short in our opinion, the market for fiber-optic components is going to shift from supporting point-to-point WDM systems to supporting optical networking architectures that will not be possible without more optical components, not fewer.