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.

Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (24889)	7/10/2000 10:39:30 PM
From: Dealer	Read Replies (1) \| Respond to of 35685

JDSU--Europe’s optical networkers in focus By Gareth Vaughan, FTMarketWatch 5:46:00 PM BST Jul 10, 2000 LONDON (FTMW) - European optical networking companies such as Bookham Technology and Highwave Optical were under the spotlight on Monday after industry giant JDS Uniphase said it was buying SDL in a $41 billion deal. Bookham [UK:BHM] surged 10.4 percent to 46.60 pounds on expectations that JDS’ and SDL’s big U.S. competitors may scramble to catch up by buying out European players in the sector. SDL [SDLI] makes laser equipment that lets customers send multiple light signals over a single fiber. JDS [JDSU] is one of its biggest customers. Under the terms of the deal, SDL shareholders will get 3.8 JDS shares for each SDL share, or about $441.51. That represents a premium of almost 50 percent over SDL’s Friday closing price. See full story. “Anything that’s optical right now is really hot,” said Olivier Vallee, Paris-based optical networking analyst at Close Brothers. He said the price JDS is paying is about 100 times SDL sales, while shares in Germany’s ADVA Optical Networking [DE:510300] trade at about 55 times its sales. “Optical networking represents the single biggest challenge for telecoms service providers over the next few years. Everyone’s trying to get into it,” Vallee said. Europe’s players European optical networking companies include the U.K.’s Bookham Technology [UK:BHM] and IQE [UK:IQE], France’s Highwave Optical [FR:416100] and ADVA. Following the massive JDS-SDL deal, shares in most of the European players have gained. Over in Paris, Highwave leapt 21.1 percent to 91.25 euros and ADVA surged 7.6 percent to 726 euros in Frankfurt. IQE rose 1 percent to 52 pounds. Close Brothers’ Vallee said of Europe’s publicly listed optical networking companies, he doesn’t see any acquisition targets, but that start ups with products, such as Highwave which listed in Paris last month, might emerge and become takeover targets for the big players. “The number of acquisition targets is running out,” he added. Of the listed batch Vallee said Bookham and IQE in particular, are in great positions because they make Dense Wave Division Multiplexing (DWDN) lasers on silicon. “Bookham’s advantage is it’s the only company I know that does it on silicon,” he said. Lucent, Nortel and Corning may prowl Scottish Equitable’s technology fund manager Stuart O’Gorman said the deal would create a dominant force in the high capacity optical networking equipment sector. __ “The optical area is hot and this goes to show just how hot,” O’Gorman said. This meant JDS and SDL’s remaining competitors, including Corning [GLW] and the in-house divisions of Lucent [LU] and Nortel [NT], were likely to hunt around for acquisition targets in the high capacity area like Bookham, O’Gorman said. “The optical area is hot and this goes to show just how hot,” O’Gorman told FTMarketWatch. Scottish Equitable, which has a fund worth over 270 million pounds that invests in technology stocks world-wide, had 3 percent of its investments in SDL and also invests in Bookham. He said the price being paid for SDL was high but fair, as long as authorities approved it. “The price is high, but if it’s allowed to happen, then you’ve got a monopoly in an area that’s growing at 100 percent a year, and that’s worth rather a lot of money,” he sad. Gareth Vaughan is a reporter in London for FTMarketWatch.

To: Dealer who wrote (24889)	7/10/2000 10:49:17 PM
From: Percival 917	Respond to of 35685

Hi Dealer, Think you better check your JDSU and GMST figures again, Later, Joel

To: Dealer who wrote (24889)	7/10/2000 10:53:37 PM
From: Ritch	Read Replies (1) \| Respond to of 35685

Hi Dealer. I think you should re-check your after hours quotes. I would love to have your closing prices on JDSU and QCOM today! I think you might have posted an older set of numbers. Ritch

To: Dealer who wrote (24889)	7/10/2000 10:59:08 PM
From: Dealer	Read Replies (1) \| Respond to of 35685

CORRECTIONS TO AFTERHOURS QUOTES Porch Basket of Stocks These Stock Have Not Been Picked By Any One Individual GORILLA--A company that controls it market because it has a discontinuous innovation ,one that is not compatible with existing systems. The market is in a hyper growth stage, and they control the architecture. There is a high switching cost to using some other company's product, KING--The Market leader, properly with a two-times lead or better over its closest competitor. If the lead shrinks too far, the king becomes a prince, and we have a kingless market. Because they lack architectural control, and because switching costs are low, they cannot force competitors onto the defensive the way Microsoft, Intel, or Cisco can. Compaq is a king. Seagate is a king of hard drives. A lot of study has been done on these stocks by the Gorilla and Kings thread. There are the stocks that are discussed most often on the porch........and 1 or more are in most porcher's portfolio. The following Stocks are on the Gorilla and King Index QCOM CLOSE 54 7/8 AFTERHOURS 54.968 GMST CLOSE 63 1/4 AFTERHOURS 63.25 JDSU CLOSE 101 1/8 AFTERHOURS 102 SEBL CLOSE 169 1/8 AFTERHOURS 169.50 NTAP CLOSE 81 1/4 AFTERHOURS 80.253 The following Stocks are on the Gorrilla and King Wait and Watchlist The Watch & Wait Index consists of stocks that have some desirable characteristics but are not necessarily Gorillas or Kings - at least not yet. Most of them will not be, but they bear watching for that possibility. They are as follows: BRCM CLOSE 224 15/16 AFTERHOURS 225.968 CREE CLOSE 137 AFTERHOURS 137 ELON CLOSE 51 3/4 AFTERHOURS 52 PMSC CLOSE 193 3/16 AFTERHOURS 193.625 RNWK CLOSE 44 3/4 AFTERHOURS 44.50 WIND CLOSE 37 AFTERHOURS 37 For "Voltaire's Cover Call Strategy 101" see Post # 9490 QCOM earnings July 19 JDSU earnings out July 26 CREE earnings out July 27 SNDK earnings out July 17 RNWK earnings out July 25 SEBL earnings out July 17 WIND reported on 6/1 BRCM earnings out July 18 ELON earnings out on July 20 NTAP earnings date was May 18