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


To: Jill who wrote (4448)1/13/2000 8:57:00 PM
From: t2  Read Replies (1) | Respond to of 24042
 
Jill, I tried figuring out how the rumor started. I had been posting about the S and P speculation for months now, only to be disappointed when some 10 billion dollar companies get added every week. (in dec and nov).

Remember that CBSMarketwatch.com article about message boards last week---when the selloffs ocurred. I was quoted in that one, as having confidence that JDSU will get added sooner or later. I believe some Yahoo message board posters started saying that the CBSMarketwatch story was a news article, erroneously. Of course CBS took one of my numerous posts on the subject and decided to print it in the "all aboard" message board comments. That is where it could have possibly started but there is no way to know.

I don't know how the stockwinners.com determined that this is a rumor. My guess is that if they see a lot of posts on this possibility, they add it to their rumor list. It did not appear anyone found out about yahoo being added before teh announcement. I don't believe people had expected the huge move in that stock on the news.

S and P statements have been pretty clear that they don't comment on possible additions. That makes sense.

We are free to speculate on possible candidates. I used a Nasdq100 market cap list i found on Ragingbull and the recent Bloomberg list of largest companies not on the index. It is clear to me that JDSU should be in the index. S and P may have certain policies that are unwritten. Nothing on their criterea list would eliminate JDSU from consideration but maybe they have a policy we don't know about. They could be waiting for the anniversary of the uniphase/JDS merger.

I just hope people don't take these rumors seriously since that implies someone has inside information (IMHO). I doubt anyone knows what the S and P committee is up to. However, we are free to speculate on the next addition.
That is all i have done. I still feel that it will happen sooner rather than later simply because the market cap could possibly grow much larger in the near based upon the company's fundamentals. I believe S and P would not want to put the index funds in a position to have to add such a large company. Add the fact that they want companies in emerging industries including fibre optics. This sector has been getting a lot exposure since the Lucent profit warning.

Those are my thoughts on the subject.