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: Matt Fitch who wrote (2620)	3/21/1997 11:34:00 AM
From: WBendus	of 42804

Matt, The way I came up with my figures is rater simplistic. I just took an average growth rate of 18 different network players, compared that to pe which when I initially did it turned out that on average network stocks were holding a pe of 100% of their growth. ie. If growth was expected to be 30% '97 to '98 then on average there was a 30 pe on current earnings. Next what I did was put in a fudge factor and said that due to market pressures I thought maybe when all settles out these stocks will most likely trade at a pe = 75% of their growth. For MRVC it spells out like this. '97 est = $0.81 '98 est = $1.19 Growth = 47% Formulated pe = 47 * .75 = 35 Target price = pe35 * .81 = $28.35 Some here feel that the estimates are on the low side. I am taking what the 1 analyst who is following this stock is saying. If we get more than his figures then my $28.35 figure is low. Either way from 19 to 20 a share it is a steal! Held 6 months or longer and you will most likely be looking at a nice health profit. Wayde.

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