Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Guy Gordon who wrote (6181)	2/10/2000 1:41:00 PM
From: RR	Respond to of 24042

Guy: Thanks info on trading channels. Appreciate you taking the time to post it. Rick

To: Guy Gordon who wrote (6181)	2/10/2000 6:35:00 PM
From: Karen Lawrence	Read Replies (1) \| Respond to of 24042

Guy: I liked reading your excellent post. I found this very positive post over at RB just now, saying 320 to 400 is possible by mid march for JDSU. ~~~~~~~~~ This is a post that came from La_Scienza from the Yahoo board........he is very good at what he does! TA shows a pennant forming. Higher lows, lower highs, reduced volume. This sort of consolidation precedes large surges in strong stocks, as was the case in December preceding the split. An event on the immediate horizon often contributes to the formation of a pennant as major players position themselves, market makers accumulate in the anticipation of heavy demand down the road. Volume has decreased from the massive buying and selling before and after earnings/ETEK announcement. The consolidation on lower volume is a good sign in and of itself. The pennant formation preceding the split on March 10/13 is a positive contributor. Furukawa entered a contract to sell 7 million JDSU shares via its Canadian Holding company. Furukawa was the "Fitel" in JDS Fitel pre-Uniphase merger. JDSU IR emailed me to confirm what CBS Marketwatch stated: Furukawa's contract is to sell JDSU in August. That implies that JDSU sold call options in the money, or near the money, pocketing the premium for the calls and setting themelves up intentionally to "get called" the stock in August. Think about it: If you own any stock in a non-margin account and you want to sell, why not write the near-the money call options for a date in the future, thereby locking in not only the strike price for the stock, but also the premium for the options. ie with JDSU at 200, write the August 230 calls at let's say 50, meaning you pocket 280 for the stock, net, when you get called the stock in August (if it's trading higher than 230, which is pretty certain assumption to make). ETEK is pricing in a near certain merger with JDSU. That's another 72 million in earnings (net) to JDSU next earnings report, probably more given 25% growth and likely higher for ETEK. Split is the spark that will see this consolidation in the low 200's form the healthiest action in this stock since last summer/fall. Look at RFMD in the low 60's in December, flat-lining for 6 weeks, then zoom off to the races at over 100. 60% gain. I see that here--$320 - $400 by early/mid March.