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

To: BWAC who wrote (20949)	7/27/2001 6:44:10 PM
From: Jon Khymn	Read Replies (1) \| Respond to of 24042

Good point, let's see how low they can manipulate this stock down this time. So who made 50b? Someone must have made out, huh?

To: BWAC who wrote (20949)	7/28/2001 4:09:14 AM
From: uu	Read Replies (1) \| Respond to of 24042

> WHAT is mind boggling is that JDSU's shares were bid up that high, and touted up that high by the analysts Right on! The same charlatans (aka analysts) are now going to the other extreme and beating on a dead horse. In 1994 when JDSU went public, it had an annual revenue of about $40 million. The market cap for the company was at around $250,000,000 (split adjusted stock price of 25 cents per share). And this is during the time when no one ever thought of the explosive growth of networking sector and JDSU's particular position. Based on its $40 million sales the stock was trading at about 6 times its sale. Mean while 7 years later in 2001 JDSU (after all the bad news, etc.) has an annual revenue of about $3 billion. Applying the same conservative sale to price ratio of 6 (as it was back in 1994 when the economy was behaving in a similar manner as it is now) and you end up getting a stock price of about $18/shr (or a market cap of about $18 billion). And yet the stock is trading under $10/shr. Even assuming JDSU's annual revenue for next year is going to be no more than $1 billion (i.e. on average $250 million per quarter for the next 4 quarters), abd based on historical conservative price to sales ratio for this sector (and in particular to JDSU), and you get a stock price that should at the minimum be $9.5/shr. And yet the stock is trading under $9/shr at this time. Unless of course the world completely stops relying on networking and Internet in general then JDSU's current valuations are indeed very high!!