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

To: Cary Salsberg who wrote (20601)	6/22/2001 12:20:09 AM
From: KMcKlendin	Read Replies (1) \| Respond to of 24042

Thanks to everybody for their replies. Cary: I was using the trailing P/S. But I do see your point: next quarter's sales annualized gives a more accurate P/S ratio at a given point in time. However, in a cyclical industry, a precipitous sales drop may serve only to increase the magnitude of the subsequent rebound. So perhaps this method may err on the side of undervaluing a company. I have a high regard for your analysis. How have you gone about valuing JDSU and what price do you think is reasonable? If I remember correctly you bought JDSU at $15 (and then sold it substantially higher on the subsequent bear rally). Nikita: JDSU has no long term debt and over a billion dollars in cash. Furthermore they have been profitable through the last reported quarter. The chance of bankruptcy is vanishingly small. jhg: My argument is that no one can predict the timing of the upturn with certainty. It is therefore better to buy at a reasonable price and wait for the inevitable. --Keith