MRV Communications (MRVC) opinions? Message Board

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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: Janice Shell who wrote (1156)	12/11/1996 8:23:00 PM
From: Dan Ross	of 42804

Here's a question for everyone to chew on over the next couple of days. Is the INTC (intel) increase in estimates due to their networking sector growth? After all, the analyst from Merrill Lynch raised his from 7.00 to 9.00 today for '98 I believe. This is a HUGE INCREASE!!! Could this be due to the wonderful networking products they purchase from MRVC? After all, they just bought 200,000 shares and warrants for up to 500,000 more. I think that something big is up with this one. Too much occurred in such a short time frame for something big not to be going on! Remember, MRVC management said that gig-ethernet will not have a big impact til late next year. Basically, they are too expensive for most right now. But if Intel begins to push the stuff, we may see the orders come in quickly. Finally, I would like to address the branding discussed in the conference call last month. Basically, MRVC management feels that they shouldn't sign too many OEM deals since they are trying to build to Nbase Brand name. This is where the margins really are!!! They sure aren't through selling to OEMs who then brand the product and sell it for huge profits. I really wonder how the brand management is going to develop. They said that they hired a V.P from Bay Networks who specializes in 2 tier distribution systems. This is one of the most essential elements that needed to be in place for the branding issue to unfold. Essentially, they sell to OEMs and then they have their brand name product selling through the other tier of distribution. With the expanded product line, I wonder if they shall send all of their product line through the OEMs or not. Some companies only sell certain products to OEMs rather than having to compete on all of the products. Only time will tell with this one. I still think that .77 for '97 is virtually nothing. That is only .1925 per quarter. I am looking for MRVC to beat the .14 number by a penny this Q and then make .18-.20 in the first Q next year. Any comments? Just thinking Dan Ross

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