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To: Beltropolis Boy who wrote (574)	7/11/2000 4:51:28 PM
From: Trader Dave	Read Replies (2) \| Respond to of 1805

Looking at annualized quarterly trailing revenues? C'mon CM, that's the mark of a retail day trader!

To: Beltropolis Boy who wrote (574)	7/11/2000 5:31:38 PM
From: DukeCrow	Respond to of 1805

i'm all for owning the new new gorilla in this space, but isn't this a wee bit pricey? It is pricey, but your calculations don't take into account SDL's preannouncement and also the huge expansions underway at the acquired PIRI and Veritech facilities which should enable very strong growth. SDL preannounced FY3Q00 revenues of around $105 million. As a private company, PIRI had been managed for profitability. Now it will be managed for growth. In CY1Q00, PIRI had $20-25 million in revenue. It ran one line on two shifts for 5 days a week. SDL is ramping that to 2 lines, 3 shifts, 7 days a week. Veritech's facilities are being expanded from 18,000 sq ft to 70,000 sq ft (that is the initial space which will be used in the new 133,000 sq ft facility, so there's more room for expansion). Veritech had about $22 million in revenue during 1999. Forgetting all the expansion in the acquired companies: @$41B, SDLI = 98x annualized quarterly revs (based on a runrate of $420 million). with JDSU now at $96 per share, SDLI = 66x annualized quarterly revs. Certainly, this is expensive, but SDL also preannounced 58% sequential proforma EPS growth (not just earnings growth through acquisitions, but EPS growth due to the extremely accretive acquisitions). JDS is growing EPS sequentially slower, so I think the premium for SDL is justified given the valuation of JDS. And, of course, JDS had to outbid Corning. Ali

To: Beltropolis Boy who wrote (574)	7/11/2000 6:19:51 PM
From: SJS	Respond to of 1805

YES. I sold today. I think they are going to beat JDSU down mercilessly. SDLI goes down 4x whatever JDSU goes down. I sold that, too. Will be able to buy them both cheaper. I think about 80 for JDSU in the ST. Steve

To: Beltropolis Boy who wrote (574)	7/12/2000 4:53:13 AM
From: Raymond Duray	Read Replies (3) \| Respond to of 1805

Oh Chris, Well there you go again, trying to be rational in an irrational market. but isn't this a wee bit pricey? Not if the economy is perfect for the next three years, creates a hockey stick in the uptake of bandwidth and not one speculator gets spooked by his own shadow. Otherwise, I'd say we've seen the highs for a while on these issues. Interesting that you didn't mention "earnings" in your little analysis. I'm really wondering what JDS has in mind here, in view of Wall Street's current discipline regarding profits. The "profits tomorrow" mantra has worn thin in a lot of sectors lately. I have my doubts that JDSU will be able to continue to be cavalier about this for too much longer. AMZN got cut in half when it refused to surrender growth for the sake of the bottom line. SVNX has been dropping like a stone lately in spite of a plethora of announced deals. No profits in sight there. So the stock just gets pummeled. I don't see it as a great distance to go from Wall Street doing a wink and nod to JDSU's "pro forma" profits, to the point where someone someday soon says "show me the money". Incorrigibly, Ray <w>

To: Beltropolis Boy who wrote (574)	7/12/2000 5:39:53 PM
From: Raymond Duray	Read Replies (1) \| Respond to of 1805

OT, PSR's, Valuation and the Eye of the Beholder Hi Chris, Re: Your concerns about JDSU and overpayments - Viewing the latest example of la luna, PMCS purchasing QEDI for 50x revenues, and then witnessing both stocks explode to the upside indicates to me that Mr. Market could care less about the valuations game in certain sectors. I'd regard today's action in PMCS as validation of JDSU's strategy. Not that I don't think all of this is something that one day we'll look back on and ask plaintively, "What were we thinking?" OTOH, I've always wondered why diamonds cost so much.... rarity value, I reckon. BWDIK, Ray