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

To: Cary Salsberg who wrote (23214)	12/28/2002 2:24:08 PM
From: ownstock	Read Replies (2) \| Respond to of 24042

Cary: I would beg to differ. JDSU is 90% SDL from a margin point of view, and about 50% JDS from a sales point of view. In terms of performance, there is a lot of history for each of the two companies. In the case of JDS, I do not think they ever made a net margin. SDL did reasonably well for many years. What JDSU should do is get rid of the passives business in China. It makes near-zero margin, because the prices for passives are so depressed. All the IP they transferred there is gone anyway (no laws, no courts). The problem is that would cut sales by 50%, and by your P/S ratio, that would not be good. But in fact, it would be better to have lower sales at much higher margins. They better do it while someone thinks it has value. -Own