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

To: Wyätt Gwyön who wrote (2331)	7/24/2000 11:31:10 AM
From: pat mudge	Respond to of 3951

Does anyone else find it kind of ironic that Corning (if the story is true) will now be "spending" 100BB for an optics house when they balked on SDLI in the low 40s? The competitive landscape in this business changes at the speed of light! There's probably more to the comparison than meets the eye. I suspect Nortel's optics business is heavily weighted towards transport and not components, and probably not a lot towards actives, if at all. Obviously I don't know NT's optical business, though I do know JDSU is one of their suppliers and that they buy from SDLI, I think in the "above $4M category." (I'd have to check the Q&A to see if they were mentioned.) The mere fact that LU and NT are willing to spin off their optical units because of "locked up value" is positive for the industry. If any of these units has superior products, they stand a much better chance of expanding their markets if they're not tied to the parent company --- obviously because they'd no longer be a threat to their competitors. If you're Alcatel Submarine and need specific products you can't find in-house, will you buy from a competitor or from an independent? The easy answer is independent. However, in the component-constrained environment, it's probably not quite as clear. You'd probably buy from whoever had what you needed. Now, on the other side of the trade, if you were LU Microelectronics -- selling these products --- would you give priority to Tyco, with whom you don't compete, or to NT or ALA, two you do? Of course the best fall-out from the NT/GLW news is its impact on the DOJ. I doubt they can argue JDSU/SDLI have no competition. Pat, aka Rambling Rose :)