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

To: Guy Gordon who wrote (6031)	2/6/2000 1:45:00 AM
From: Curtis E. Bemis	Read Replies (1) \| Respond to of 24042

Buying ETEK for JDSU Hi-- Very interesting on "risk arbitrage". We could add a few more examples that illustrate the risks involved. The CIEN-TLAB affair comes to mind. I was lucky to escape that one without losses. And, we have the LTCM affair, which is related to CIEN-TLAB. LTCM almost took down the whole world economic infrastructure and the gummit had to intervene to save it. Besides, LTCM had Nobel Prize winning economists taking them down----optioned at ethereal levels. Maybe this suggests that those professionals are not as good as is espoused by Sims. I would not dismiss the risks that easily tho. Now, both of the above examples are extreme and those particular circumstances were indeed unusual----in fact, I might even claim the bungling and involvement of LU in the CIEN-TLAB affair should have been an advance warning that LU would have the future troubles they currently experience. Buy ETEK for JDSU ??? There are risks but is not that what investing is all about, if you do the DD ?? Good luck.

To: Guy Gordon who wrote (6031)	2/6/2000 2:40:00 AM
From: Steve168	Respond to of 24042

Well, Friday ETEK down 9 while JDSU down 4, so the gap broaden 5 dollars. Why is that? IS this an opportunity or a trap?(for someone want to play Long ETEK/short JDSU) Best,

To: Guy Gordon who wrote (6031)	2/6/2000 9:59:00 AM
From: steve mamus	Read Replies (1) \| Respond to of 24042

Excellent questions...however what is the downdraft for ETEK in particular if deal falls apart. I would expect a one day drop in ETEK minimum of 25-30%. Irrespective of all other considerations I was wondering what the perceived hit would be to ETEK if the deal fell apart (i.e.Supposed the deal fell apart; how much of a fall would one expect in the stockprice of ETEK within 72 hours of such an announcement - anyone? Whatever you guess I would double it if there are bad market conditions. I also think that JDSU would take a big hit if deal fell apart). As a point of reference I am long both ETEK and JDSU and have sold puts aggressively on JDSU. I have kept my position much smaller in ETEK then I would like due to the 20% arbitrage position. I have also discussed this with my broker and his response "THE PEOPLE ON WALLSTREET ARE NOT STUPID, THERE IS A REASON THAT THERE IS A 20% SPREAD". He has suggested to me to avoid the temptation to load up on ETEK. He is a major bull on ETEK. How serious are the regulatory concerns?? These are my major concerns. Are there DOJ anti-competitive issues at play here- is JDSU a MSFT-wanabee??