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

To: Nilesh Parikh who wrote (5489)	1/28/2000 11:29:00 AM
From: barry fowler	Read Replies (3) \| Respond to of 24042

Just listened: Telecom: Demand accelerating, deregulation Europe also deregulating. Asia and L. America on a rebound. These factors expected to increase demand in telecom due to catalyst: broadband. Due to broadband, network architecture is changing / needs to be upgraded. Pure component plays are JDSU, ETEK, SDLI. Network: CSCO and NT. Penetration of the market estimated at 2% -- still in the infancy. Fiber Optic: Early stages of industry growth. Price / performance doubles every 9 months compared to 18 for PC's -- so, growth is much faster. Can expect "dramatic growth" for the forseable future. JDSU "Best in class". Strategic to customers in that they're not only doing piece-parts, but also sub-systems. This enables customers (NT, LU) to keep up with the technology. Their market strategy is based on acquisitions. ex: Optical Coating Labs -- got technology. With ETEK they'll get additional manufacturing capability, but also passive components line. With these two acquisitions, the analyst's views the combined companies as more than the sum due to complimentary capabilityes: ETEK to help scale manufacturing quickly, and Optical Labs for the technology. Long haul transport is key for JDSU. CEO and management the best around -- better than NT, although NT's is viewed favorably. NT: OPtical systems play. 60-70% growth in the division. What to buy: NT or JDSU? Depends on risk profile. NT more stable, expect 30-40% growth over 12 months. JDSU more volatile w/ greater swings -- buy on dips if you can tolerate the volatility. Total return may be greater, if so.