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

To: DukeCrow who wrote (2358)	7/25/2000 8:40:22 AM
From: t2	Respond to of 3951

abukhari, Exactly what I was thinking. Thanks.

To: DukeCrow who wrote (2358)	7/25/2000 8:46:52 AM
From: sam	Read Replies (1) \| Respond to of 3951

I suspect the arbs feel the current strength in JDSU is artificial. Thus, they feel no need to keep SDLI rising locks step with JDSU. bwdik

To: DukeCrow who wrote (2358)	7/26/2000 2:22:22 PM
From: Gerald Walls	Respond to of 3951

I think t2 was referring to the funds starting to buy JDSU which is helping to support its price, but not SDLI. At the same time, the arbs just don't have the muscle to keep up. Notice JDSU's volume on Monday was triple the average, while SDLI's was barely more than double. Jumping in here cold since I've just started reading this thread. Likely JDSU has become very hard to borrow. I figured those that outright shorted JDSU would be burnt to a crisp but I failed to consider that arbitragers may not be able to do their jobs (since the ones that aren't MMs have to borrow to short legally). I sold my JDSU and bought SDLI the day of the merger announcement at about a 16% spread. After having closed at one point to only about 10%, the spread's now at nearly 25%!