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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (13889)	11/3/2000 3:00:38 AM
From: djia101362	Read Replies (1) \| Respond to of 24042

Pat, consider yourself lucky that you need to be concerned with wash sales, for some of us...the wash sale rules have been a non-issue since the Spring LOL

To: pat mudge who wrote (13889)	11/3/2000 7:36:10 AM
From: sam	Respond to of 24042

Spread seems to narrow on rallies while it enlarges on selloffs. Selloffs always seem to raise the specter of a deal breaker due to the acquirer's price being inadequate...in all acquisitions -- not just this one. Quite superficial. So it shouldn't be a problem -- at all -- in this situation. FWIW, I sold all my JDSU Wednesday and used all those dollars to buy SDLI at the 18% discount. Will end up with more shares when all is said and done. That's how much I feel the deal is a shoe in. Still trading JDSU as that one moves with less -- ahem -- volatility. imho

To: pat mudge who wrote (13889)	11/3/2000 11:28:11 AM
From: Joe Giorgianni	Respond to of 24042

When does a spread normally begin to close? For what it's worth I sold all of my JDSU today and bought SDLI (fun money and both my and my wife's IRAs). If that's not the kiss of death on the deal, I don't know what is. Joe

To: pat mudge who wrote (13889)	11/5/2000 4:44:16 AM
From: DukeCrow	Read Replies (1) \| Respond to of 24042

Pat, I've read some articles on arbs and the JDSU/SDLI deal, and it appears that arbs aren't that aggressive in playing the spread. They are mostly playing the spread when it widens to 20% or so and then unwind after they make a couple percentage points. Basically, they have no clue as to whether the deal will or won't close and aren't willing to take the risk involved in holding the arb position until the deal closes. Also, the high price of SDLI makes this a capital intensive arb play, and most arbs don't feel comfortable putting up the capital to help narrow the gap further. I don't think the spread will close appreciably until the companies give some kind of "all clear" signal. Just MO. Ali