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

To: Baton who wrote (3519)	11/19/2000 12:18:06 PM
From: pat mudge	Respond to of 3951

The following give an idea what's happened in prior mergers: OCLI stockholder meeting set: jdsuniphase.com ETEK merger announced: jdsuniphase.com OCLI and ETEK meetings planned: jdsuniphase.com OCLI merger complete: jdsuniphase.com ETEK-JDSU request for further information: jdsuniphase.com DOJ approves merger: jdsuniphase.com Shareholders approve merger: jdsuniphase.com Merger closed: jdsuniphase.com JDSU announces SDLI merger: jdsuniphase.com

To: Baton who wrote (3519)	11/20/2000 3:34:02 AM
From: Don Edgerton	Read Replies (1) \| Respond to of 3951

Approval seems to be getting closer based upon the significant reduction in the arb margin last week. MY guess is that upon DOJ/FTC approval the margin would go to less than 5% and possible to the time value of money based upon the expected closing date. The share prices of SDlI and JDSU will then be in lockstep until closing. After closing and with the weakness in fiber and tech stocks - who knows. A reiteration of the outlook and bullish case for the combined company would help - but can't overcome the sector bearishness which is based upon forecasts of reduced telecom infrastructure spending and economic slowdown. Unfortuately we could see a lot of PE compression even with good earnings. That hurts. I am playing both the arb spread and implicedly long SDLI with short puts. The arb has worked -subject to margin interest costs. Would have played it all that way - but my max margin was limited. Keeping fingers crossed. JDSU acts like it wants to go higher but this election fiasco just want let the market rally. The only good I see out of this is that some internet stocks should see higher hit rates based on increased surfing realted to the election. This would tend to favor Yahoo and perhaps AOL aand MSN. Other negatives likely to outweigh these positives shortterm. Hopefully the election distraction will not delay the JDSU/SDLI merger. Such action migh even restore confidence that the Government is working.