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Technology Stocks : SDL, Inc. [Nasdaq: SDLI] -- Ignore unavailable to you. Want to Upgrade?


To: pat mudge who wrote (994)3/17/2000 3:40:00 PM
From: Lee  Read Replies (2) | Respond to of 3951
 
Hey Pat,..divergence between JDSU & SDLI

Have no idea why SDLI is up approximately 9% while JDSU is only up 0.8% but if I had to make a guess, it would have to do with the float. Pre-split JDSU had some 535m shares for float and SDLI only had 56m, according to Yahoo. And since these two are the premier plays in this industry, IMHO of course, people buying in these would be more apparent in SDLI than JDSU.

Plus with the recent splits, SDLI still only has 140m outstanding and if the float is the same percentage, that would still only leave 112m for trading; whereas, JDSU now has 3b and by the same reasoning, that would leave approx. 2.25b for trading.

Might be faulty reasoning though. <g>

Cheers,

Lee



To: pat mudge who wrote (994)3/17/2000 5:32:00 PM
From: Guy Gordon  Read Replies (1) | Respond to of 3951
 
It could have nothing to do with SDLI.

The arb's are playing JDSU against ETEK. In the three days previous, the premium for ETEK has increased from 4% to 19%. Today it came down again to 12%. That means they are buying ETEK and shorting JDSU again.

I have no idea if this is enough to account for the difference between SDLI and JDSU today. OTOH, it may not even need an explanation.