JDS Uniphase (JDSU)

[riverhigh22]

Cap Ex spending, as you are aware, fell off a cliff during last 2- 3 years. jds sales to telecom carriers down between 85 to 90%. Spending at the current low percentage of revenues (flat) would unlikely be made up by increased revenues. Lets say Bell South made 1,000 in 2003 and Capital Exp of 10%. If revenue went up 5% in 2004 , Cap Ex would go up $5. Let say revenues were flat but they incread Cap Exp by 5% of revenues that would result in an increase of cap ex by $50.

Althogh positive that jobs were created this month instead of a loss, the relative small number of jobs created did not impact the overall unemployment rate. This may eplain the cut back on the indexes on Friday. Caution. NT was up today with the rest of the market but collapsed later in the afternoon. Keep an eye on NT for the next couple of days. Hopefully it was just a minor correction . Fund managers were just locking in profits and not a leaked warning on the quarter ending Sept 30. Could be telling us something that may impact jds.