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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: StockHawk who wrote (29837)	8/11/2000 2:59:57 PM
From: shamsaee	Read Replies (1) \| Respond to of 54805

IMHO JDSU's recent buying of etek and sdli if it goes through will be quite dilutive and given the current market conditions,the potential for a major haircut on the downside is much higher than a move to the upside. I also tend to use qcom as a measuring stick with everything else I hold and have a difficult time justifying some of the valuations.I also find jsdu earnings quite difficult to absorb due to all the different charges which for the time being is on my watch and wait list. If you are heavily invested in jdsu some form of hedging(some covered calls or sale of common for leaps) or lighting up on a portion would not be a bad idea. JMHO

To: StockHawk who wrote (29837)	8/11/2000 3:08:22 PM
From: Seeker of Truth	Respond to of 54805

Stock Hawk, with the exploding sales of JDSU it would be closer to reality to look at the most recent quarter. Sales were 524 million. Multiplying by four gives us 2.096 billions annual rate. The market capitalization is 782 million shares times a price of a few minutes ago of 116, giving us 90.7 billion market cap. Thus we get 43 times sales as a recent figure. If the stock just sits at the present price for nine weeks, say, the price to sales ratio will again be noticeably reduced. I'm not saying JDSU is cheap, of course.

To: StockHawk who wrote (29837)	8/11/2000 9:57:40 PM
From: LindyBill	Read Replies (1) \| Respond to of 54805

Lindy asks "what could go wrong?" Thank you, Hawk, for running the negatives on JDSU. I have taken enough "haircuts" this year, and I certainly don't want another one! The problem is, if you want this good of a runner these days, you have to pay the price. JDSU has managed to get to this point without a major stumble, and we are both betting that they can continue the run. The market they are in is so good right now that they are enjoying a "Gorilla" marketing situation. Lets hope our bet on them is correct.