CNN states that 95% of fiber optic lines are laid but not used, and that it would take tens of billions to make it usable.
Furthermore, they state that even 1 or 2 strands would have been sufficient to meet consumer demand, yet there is 140,000 miles of the stuff laid around Oregon - the remains of a latter day "Gold Rush"
Now after reading this, can someone objectively and honestly tell me what chance JDSU has of staying in business long-term and not disappearing like yesterdays Gold Rush companies ? After all, wouldn't it take a hundred years to use all of that fiber laid already ?
it is my opinion that JDSU will be in buisness for at least another 2 years based on the fact that they have no debt and roughly a billion in the bank, their cash burn rate is minor, and most importantly telecom is only part of their buisness. I think companies that lay down fiber are going to go under, but companies that light up this dark fiber will stick around much longer. Jdsu has been growing market share due to competitors getting out of the industry and are by far one of the leaders in the components industry, besides we have seen a small vote of confidence by management by the way of insider buying above 3.20, secondly the company granted options that begin vesting in 11/03 at an excercise price of 2.75 so it is my belief that JDSU will at least be over that mark same time next year.