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

To: djia101362 who wrote (2329)	7/24/2000 7:53:15 AM
From: t2	Respond to of 3951

djia, I think most believe that the deal will get by the regulators. One way I would look at such deals is---- The SDLI stock trades at a discount and that indicates risk. Otherwise there should no discount whatsoever--maybe even trade at a premium. <g> I also think SDLI will drop. That is the risk one takes for buying SDLI cheaper---and that is why it trades at a discount above 10%. It is worth buying SDLI as part of the combined JDSU/SDLI holding as the reward may outweigh the risk, statistically. The risk might increase a bit more as Corning is rumored to be in talks with NT about an optical---taking out a potential SDLI acquiror. However, maybe that could also mean the regulators will go easy on the JDSU/SDLI---ie both factors could offset one another. To me the bottom line is tax consequences. If this transaction is taking place in a tax sheltered account, I would probably go with at least 75% in JDSU and only 25% in SDLI. If capital gains is in un-registered accounts, I would buy the one I don't have. An alternative to this is a hedged SDLI position. JMHO