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Gold/Mining/Energy : JDS Fitel -- Ignore unavailable to you. Want to Upgrade?

To: Chris Stovin who wrote (182)	1/27/1998 5:18:00 PM
From: Chris Stovin	Respond to of 815

I know this is old news but it is the local take on the split...for our U.S. friends etc. Tuesday 27 January 1998 JDS Fitel proposes stock split Move gives small-time investors easier access to high-flying shares Keith Woolhouse The Ottawa Citizen Nepean-based JDS Fitel is proposing a three-for-one stock split that will make the fibre-optic company's shares more attractive to small-time buyers. At close to $94 apiece, where the stock was in midweek, it was getting out of the reach of an average investor. Even a 23-per-cent decline since then to yesterday's close of $73.25 still presented a considerable investment for anyone buying 100 shares. "This is a good move for retail shareholders who found the stock too expensive," said technology analyst Gurinder Parhar of Canaccord Capital of Toronto. "Making it more affordable will make it easier, and more attractive, for small shareholders to buy into the company. "For institutional investors, it doesn't really matter." JDS Fitel is a leading manufacturer and distributor of fibre-optic products, one of the fastest-growing areas of the communications industry. Company president Jozef Straus mentioned price affordability when announcing the proposal. "Given the strong prospects for continued growth, the proposed split will ensure that our shares are more accessible to a wider range of investors." If, as is expected, shareholders approve the split, it will increase the number of common shares outstanding to 76.5 million from 25.5 million. Majority shareholder Furukawa Electric Co. Ltd., of Japan holds 51.9 per cent of JDS Fitel stock. The public float amounts to 42.7 per cent, about 10.9 million shares. Management holds the balance, about six per cent. When a stock splits, the number of shares is increased and the share price decreases proportionately. In this instance, a shareholder with 100 shares will emerge with 300 shares and, at yesterday closing price, the shares would be priced at $24.41. JDS Fitel went public in March 1996 with a new issue price of $12. The share price has soared on the basis of consistently good financial reports. The benefit of splitting is that affordability, coupled with strong revenue growth, has a positive effect on the company's stock and carries it back up. Mr. Parhar has a $100 pre-split target for the company. "JDS is continuing to demonstrate outstanding growth, and with its strong cash position, it has the ability to grow through acquisitions as well," he said. "In the current environment, we note that as the majority of demand for JDS products is not currently in Asia, JDS is not significantly affected by the current currency woes of that region. "We continue to like the long-term prospects for growth at JDS, based upon our assessment of the overall market, management, and the product line."