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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: Linkdog who wrote (14947)8/9/1999 2:46:00 PM
From: Bruce L  Read Replies (1) of 42804
 
<<I am just befuddled as to why MRVC is getting next to zero notice....I'm starting to question our collective analysis>>

Good question and I share the same query re our collective analysis because I too lack Sector's expertise. But here's my explanation of why the startups are getting such high market caps.

The startups have no "baggage," meaning no prior history and - like the internuts - no earnings. That means expectations and possibilities are unlimited. Many of them will eventually come back to earth but in the meantime they have momentum.

MRVC, on the other hand, has a spotty history and expectations are (unfairly) bound by what its done in the past. For MRVC, investors and the Street have a "show me" attitude.

What keeps me in MRVC as heavily as I am is that all trends as far as I know are positive, especially the FACT that the stock is being accumulated. After "Black Friday" (Aug 27, l998) institutions dumped MRVC like there was no tomorrow. This was pretty extreme distribution. Now, it's clearly being accumulated, but given the earlier distribution, this is a slower process than we'd like.

Finally, it would take only one of the MRVC startups to hit to double the stock from today's price. As you may know, my pick is Hyperchannel
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