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

To: FR1 who wrote (4876)	1/20/2000 7:23:00 PM
From: taxman	Respond to of 24042

yes--if you are sure the merger will be consummated. various shareholder and regulatory approval are still needed. there is never any sure thing on wall street. regards

To: FR1 who wrote (4876)	1/20/2000 7:25:00 PM
From: H Adams	Read Replies (1) \| Respond to of 24042

Taxman, Your calculation is correct. The to be acquired company never trades at the actual amount until the day the acquisition occurs. The spread that exists covers he risk the deal does not go through. Howard

To: FR1 who wrote (4876)	1/20/2000 7:49:00 PM
From: SJS	Respond to of 24042

Franz, Yes and No. Correct only if you know the risk in investing in the stock being acquired. Correct if you can stomach the deal NOT going through (for whatever reason) and your investment dropping back to the original price it was announced at (or close to it). You don't get this premium for free. You have to earn it by the risk you take. If you want the pure premium of the deal, then you have to do what ARBS do: 1) Short 1.1 JDSU for every 1.0 LONG of ETEK. That way, you capture just the premium. Most of us here eventually want to own JDSU stock from this and are willing to accept the risk of the deal, so we just buy ETEK and get that juicy premium. I've advised other that new first-time entry to the JDSU phenominon NOT be done with just ETEK stock eventually translating to JDSU. I've advised it be done with both a pure JDSU purchase AND some ETEK, as well. Regards, Steve