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

To: Road Walker who wrote (11261)	7/11/2000 11:42:05 AM
From: onurbius	Respond to of 24042

Jubak's Journal 7/11/00: "-------------------------------------------------------------------------------- Half a strategy is worse than none Before the market opened on July 10, JDS Uniphase (JDSU, news, msgs) announced that it would buy SDL (SDLI, news, msgs) for about $41 billion in stock. Even though the deal would create an optical-networking powerhouse, the market was shocked by the price, which is about 50% above the Friday close for SDL, and reacted by driving down the price of JDS Uniphase shares. (I'd have to say I agree with the reaction to the size of the premium. I sold SDL out of Jubak's Picks on June 2, at about 50% below the price that JDS Uniphase agreed to pay because I thought the stock was over-valued then.) Paying this kind of premium -- 3.8 shares of JDS Uniphase stock for every share of SDL -- is probably necessary to capture SDL, but Wall Street will keep asking whether or not the deal was worth doing until it starts to put some additional earnings on the combined company's bottom line. JDS Uniphase management said that it expects the deal to close in December and that it will immediately add to the company's earnings per share. Let's hope so. At the time of publication, Jim Jubak owned or controlled shares in the following equities mentioned in this column: Cisco Systems, E*Trade, Intel, JDS Uniphase, Microsoft and WorldCom."