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

To: PLeaps who wrote (9909)	4/29/2000 9:37:00 AM
From: Wyätt Gwyön	Respond to of 24042

When the merger goes through, the short covering will undoubtedly spur a rally. Rally may happen, but not for the reason you think: arbs who are long the JDSU/ETEK spread are short JDSU and long ETEK. So if the merger occurs, their long ETEK shares will be converted to long JDSU shares, thereby offsetting their (current) short position in JDSU. But I believe you are correct in pointing out that the large short interest in JDSU is related to the merger and could be a passing phenomenon.

To: PLeaps who wrote (9909)	4/29/2000 10:20:00 AM
From: sam	Read Replies (1) \| Respond to of 24042

No -- the arb shares short JDSU will not spur a rally since those shares are already accounted for by ETEK long shares. It will be a wash, for the most part. That said, there HAS been a large increase in non-arb short shares -- those will, and probably are now, being covered. Hope this makes sense.