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

To: t2 who wrote (7039)	3/5/2000 9:15:00 PM
From: Bill Holtzman	Respond to of 24042

>>Lucent would not want to buy SDLI. Such a move would limit potential customers either immediately or down the road. JDSU strategy has been very clear that they will not become a systems company.<< T2, These comments from a friend of mine: LU has already announced additional spending on optical component manufacturing. LU stated that they could not build the pieces fast enough to meet customer demand and it cost them a revenue shortfall last quarter. LU wants to make the pieces, period (because of the margins). This strategy does not limit LU customers any more than they are limited today. If LU makes what it's customers need then LU sells it to them. If LU does not make them then LU still sells it to them (the pieces just come from a third party like JDSU/ETEK/GLW etc...). The customer gets what he needs. Why would LU care that JDSU says "they will not become a systems company"? Why would that prevent LU from growing its business into the profitable optical components business through acquisition? LU does not fear "systems" competition from JDSU and JDSU will sell pieces to LU as long as LU asks for the pieces, no matter what business LU is in.