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


To: Cary Salsberg who wrote (21202)8/11/2001 7:40:07 PM
From: sea_biscuit  Read Replies (1) | Respond to of 24042
 
Nothing long-winded. As business declines, this will probably be making under $1B in annual revenues, and the buyer is not likely to pay more than 4 times sales, since the company will be in distress. That makes for a purchase price of less than $4B, and divided by $1.32B shares, we arrive at less than 3 bucks a share.

And that is for the "happy ending" scenario. A price of 4 times sales is rich. It could be worse, a lot worse.