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: Bridge Player who wrote (16766)	11/11/1999 12:42:00 PM
From: Sector Investor	Read Replies (2) of 42804

<<About 3 months ago I ran across an example very similar to our situation with OA. A company trading at around 40 held stock in a recent partial spin-off that was worth over $70/share based on the market price of the spin-off. Hopefully someone who lurks here will recall? As I remember it was a case where the other company was not expected to keep its price at current levels.>> BP and all, I would like to explore this further. Let's assume for discussion purposes that after the IPO OA is awarded a "fair" market value of between 10 and 20 times Y2K sales of $90-100 million. This would give it a value between $900 million and $2 billion in the market. Further assume MRVC holds 80%, or between $720 million and $1.6 billion worth of OA stock. Now, how long could an inequity in MRVC price exist? I can see that people may feel OA price will come down after a while so MRVC would be lower, but what if OA stays up? Wouldn't market forces correct this over time?

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