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Technology Stocks : MRV Communications (MRVC) opinions?
MRVC 9.975-0.1%Aug 15 5:00 PM EST

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To: Dan Ross who wrote (2515)3/14/1997 5:41:00 PM
From: WBendus   of 42804
 
Dan, For a portfolio that size it is hard to own much more than 1, 2, 3 or 4 stocks. To own anymore, if the market does not get you the commissions will. A 100 shares of a stock is a hard way to make money. As long as you do your homework there is no problem with one stock unless you are 50 years old, no retirement fund and little income. I am not managing huge amounts of money either, and I only have 1 stock (now) and a mutual fund and sit at an averaged price of $25.88. Then again, I am 26 and hopefull my earings prospects will improve.

When we see 30 that opens the door for 40+. Keep in mind that networks are off 30% from their highs and sit only about 16% off their 52 week lows. While the industry is expected to grow at 30 to 40 per cent MRVC should out perform that. What the market is pricing into these stocks is 2 things: 1) Deccelerating growth and 2) even greater decceleration of earnings. MRVC will not suffer nearly as bad if at all in respect to earnings or revenue deceleration. Rember that MRVC is postioned to go what ever way the industry goes. They are not riding on one technology which may either become obsolete or make the others obsolete, and they are not trying to force the industry to conform to their products. Their technology is geared to work with just about all existing protocols and that makes MRVC, in my opinion, adverse to technological risks.

Wayde.
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