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

To: Trebor who wrote (5278)1/26/2000 9:28:00 PM
From: Mr. Palau  Respond to of 24042
 
Your math is fine. The price of ETEK is discounted because of the risk that the buyout could conceivable unraveld, as did the TLAB-CIEN deal. As the merger date approaches, and there no hiccups along the way, the price differential should disappear. I have bought ETEK to take advantage of the discount. I had good luck taking this approach with the GBLX-FRO deal (enabling me to get shares of GBLX at about $20 per share last year), but there is an inherent risk.



To: Trebor who wrote (5278)1/26/2000 9:28:00 PM
From: t2  Respond to of 24042
 
The discount is the risk of the deal not going through. The assumption is that that ETEK stock will fall if that occurs. What if regulators don't approve it.
IMHO, the big discount is large enough to buy ETEK instead because i think ETEK would have gone up on its own quite a bit even if the merger was not announced.
There are no guarantees but i am considering getting ETEK when and if i add to my position.
Determine your risk tolerance if your plan is to buy ETEK.


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