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

To: puborectalis who wrote (20493)	6/18/2001 11:27:33 AM
From: OWN STOCK	Respond to of 24042

Fallope: Couple of observations: 1) The only justification for JDSUs price historically has been their growth rate. Their principle metrics (Profit%, Earnings%, ROIC) are lousy (and have always been so) compared to INTCs. 2) Lack of LT debt is not a virtue, it is a very big problem...if they had financed more with debt, they could have conserved equity, and we stockholders would have been a lot better off. Problem is, when you do not run an efficient enough ship, and you are growing, debt looks expensive compared to equity. Getting their ship into shape should be the prime directive for mgmt. 4) It is a bit of chicken and egg problem: high prices make for low sales, but cutting prices makes for low margins... 5) Do not ignore Moores law when planning new products...or selling old ones. -Own