Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (37607)	8/2/2005 7:15:41 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

i don't follow JDSU anymore. i used to follow the optical sector closely and sold out of SDLI after the JDSU buyout was announced. (my wacked-out theory at the time was that SDLI had big upside since it was only around 10-20x sales when JDSU was at 50x...it worked since SDLI tripled in the space of a few months from late spring 2000 into the summer, before beginning a long, slow descent down the 99% negative slope.) i certainly don't mean to imply they are a bubble stock now. after all, they traded as high as 150 i believe, so at 1.50 that is a 99% drop. since bubbles overshoot on the upside, it stands to reason they will overshoot on the downside. many Inuts were 10-baggers off their 2002 lows. i don't see where anybody can get the idea that hedgies are limited to 2:1 leverage. LTCM was leveraged 100:1, and in illiquid positions to boot.