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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (7356)	8/18/2001 12:25:37 AM
From: Mark Adams	Read Replies (1) \| Respond to of 74559

Keen insight. Mr Shing would be worth of study for aspiring wealth creators. Winning by holding half of something that used to be whole is not an exercise to be repeated ROFL. I was trying to put together some numbers early today, to respond to Grace's example re Juniper. Of another company I happened on while studying a disaster de jour of some days ago, JDSU. In effect, Furukawa managed to parlay half their holdings in JDSU for Lucents' optical business, plus some cash (1/2 a billion or so). They still hold half of something, that may be worth nothing, so maybe they should take lessons from Mr Shing. Timeline; On 1/19/1999, a merger of Uniphase and JDS Fitel became JDSU. Furukawa Electric held a 24% interest of the newly combined entity as a result of it's prior investment in JDS Fitel (47.6% owner). Pre split, FE held 18,999,260 exchangeable units. 12/1/99 Furukawa Electric reports it sold 1.815 million shares at US $218.50 retains 36,183,520 post split exchangeable shares, presumably to pay down debt. 1/27/00 Furukawa Electric entered into a forward sales agreement for 3.5 million shares (roughly 10% of their holdings) Feb 13, 2000, per 13D filing, FE entered into a second forward sales agreement for another 950,000 shares. June 20, 2000 Furukawa wisely sold some 7.7 million shares of JDSU, reaping 962.5 million. Added to S&P July 26 00, with a 100 billion market cap, requiring index fund purchases of up to 5 billion. Given a decline in market cap to around 11 billion today, index funds must have contributed to the decline by coughing up some of those once expensive shares. (to the extent that the decline in JDSU exceeded that of the S&P 500). Once again, index funds are a bagholder, and a viable exit strategy continues un-noted. FE owns 61% Optical Communication Products, Inc. 2/14/01 FE owns 126,870,080 shares of JDSU, or 13% 7/25/01 Recently, Furukawa redeployed some of their capital, buying the optical arm of Lucent for 1.875 billion. world.altavista.com approximately 933,000,000 U.S. dollars world.altavista.com approximately 950,000,000 U.S. world.altavista.com approximately 185,000,000 U.S. dollars world.altavista.com approximately 400,000,000 US $