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

To: Cary Salsberg who wrote (20902)	7/26/2001 8:50:08 PM
From: BWAC	Respond to of 24042

Cary, Good calculations. I'd agree with it all. I came to about the same conclusions. Message 16133128

To: Cary Salsberg who wrote (20902)	7/27/2001 3:18:07 AM
From: not925	Read Replies (2) \| Respond to of 24042

JDSU to $3.18/sh possible ... From the press release: "The goal of the program is to create a cost structure that results in breakeven financial performance at $350 million in quarterly sales." (http://biz.yahoo.com/prnews/010726/sfth078.html ) $350M is what they are now planning on (could be lower 3-6 months from now). $350M x 4 = $1.4 billion per year run-rate revenues. Give them a very generous price-to-sales ratio of 3 given current situation. So, $1.4B x 3 = $4.2B market cap. There are 1.32B shares outstanding, so $4.2B/1.32 = $3.18/sh is the target price where this stock may be headed. (Note the balance sheet currently has $1.8B in cash. However, it also has $0.7B in tax liabilities. So let's assume they are not going to have too much cash left on the balance sheet after they are done with all the writeoffs/writedowns in the next six months) quote.yahoo.com