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

To: t2 who wrote (4661)	1/18/2000 8:13:00 AM
From: SJS	Respond to of 24042

Yes sir. From a new year's resolution to continue to research and overweight in optical technologies for at least the first half of 2000, and then review the market and sector again to see if I say at that level. I bought the layup stocks (sector-wise): ETEK and SDLI. I didn't think that either would be a JDSU target, but rather the insatiability of this segment would help everyone. This is clearly a bonus for me, and other ETEK holders/buyers. Steve

To: t2 who wrote (4661)	1/18/2000 10:33:00 AM
From: LBstocks	Respond to of 24042

Salomon Smith Barney's report re JDSU/ETEK> JDSU: Announces Plans to Acquire E-TEK Dynamics JDS Uniphase Corp(JDSU)* Rating: 1H Salomon Smith Barney ~ January 18, 2000 01/18/00 JDS Uniphase (JDSU $192.18,1-H,Tgt $160.00) Lissa Bogaty --SUMMARY:--JDS Uniphase--Connectors & Other Components JDS Uniphase announced last night its plans to acquire E-TEK Dynamics (ETEK 1H $135) in an all-stock transaction valued at approximately $15 billion. The deal should be low-single-digit accretive. We believe that what the deal really does for JDS Uniphase is gives the company time-to-market in TFF-based modules, as ETEK is known for its low-cost packaging, and offshore manufacturing of these products. There are other synergies and E-TEK does have some interesting product development efforts underway, but capacity appears to be the driving force behind this transaction. *We remain very positive on JDSU fundamentals and reiterate our Buy rating. 01/18/00 JDS Uniphase (JDSU $192.18,1-H,Tgt $160.00) Lissa Bogaty --EARNINGS PER SHARE-------------------------------------------------------- FYE 1 Qtr 2 Qtr 3 Qtr 4 Qtr Year Actual 06/99 EPS $0.07A $0.08A $0.10A $0.12A $0.37A Previous 06/00 EPS $0.14A $0.16E $0.17E $0.18E $0.65E Current 06/00 EPS $0.14A $0.16E $0.17E $0.18E $0.65E Previous 06/01 EPS $0.19E $0.22E $0.24E $0.26E $0.91E Current 06/01 EPS $0.19E $0.22E $0.24E $0.26E $0.91E Previous 06/02 EPS $N/A $N/A $N/A $N/A $N/A Current 06/02 EPS $N/A $N/A $N/A $N/A $N/A Footnotes: 01/18/00 JDS Uniphase (JDSU $192.18,1-H,Tgt $160.00) Lissa Bogaty --FUNDAMENTALS-------------------------------------------------------------- Current Rank........:1H Prior:No Change Price (1/14/2000)....:$192.18 P/E Ratio 06/00.....:295.7x Target Price..:$160.00 Prior:320.00 P/E Ratio 06/01.....:211.2x Proj.5yr EPS Grth...:50.0% Return on Eqty 99...:N/A% Book Value/Shr(99)..:23.87 LT Debt-to-Capital(a)0% Dividend............:$N/A Revenue (00)........:1134.10mil Yield...............:N/A% Shares Outstanding..:179.5mil Convertible.........:No Mkt. Capitalization.:34496.3mil Hedge Clause(s).....: Comments............:(a) Data as of the most recently reported quarter. Comments............: 01/18/00 JDS Uniphase (JDSU $192.18,1-H,Tgt $160.00) --OPINION:------------------------------------------------------------------ JDS UNIPHASE ANNOUNCES INTENT TO ACQUIRE E-TEK DYNAMICS FOR $15 BILLION IN STOCK JDS Uniphase (JDSU) announced last night its plans to acquire E-TEK Dynamics (ETEK) in an all-stock transaction valued at approximately $15 billion. ETEK shareholders will receive 1.1 shares of JDSU stock for each share of ETEK. The acquisition will be counted for as a purchase transaction, is subject to normal regulatory approval and the approval of ETEK's shareholders, and it is expected to be accretive to earnings in the low-single-digit range. There are no collars on the deal. DEAL DRIVEN PRIMARILY BY CAPACITY AND TIME-TO-MARKET CONSIDERATIONS We believe that what the deal really does for JDS Uniphase is gives the company time-to-market in TFF-based modules, as ETEK is known for its low-cost packaging, and offshore manufacturing of these products. There are other synergies (JDSU has a small position in couplers, while ETEK is the market leader, providing product-line synergies and further backward integration; ETEK has a solid position in isolators for submarine, which JDSU did not have; the combination provides more scale to pay for automation and to concentrate on R&D projects) and E-TEK does have some interesting product development efforts underway (Interleaver technology, hybrid FBG/TFF WDM modules to decrease channel spacings with existing technology, arrayed waveguides), but capacity appears to be the driving force behind this transaction. We remain very positive on the fundamentals for JDS Uniphase and reiterate our Buy (1H) rating on the shares.