<<Happier that I have a lot more MRVC than Madgf. >>
Me too, Armin. MRVC is now about 65 percent of my cash account and MADGF is only 8 percent. MRVC is 90 percent of my IRA account and MADGF is about 10 percent. In today's market condition, to great extent I agree with that market is merciless, I need to justify my holdings of MRVC.
<<All these companies are losing money- however on a comparative basis Real Networks and Digital Island are much more expensive than Madgf and Madgf looks to be a key component of their initiative, so if you believe Real Network survives so does Madgf and if Madgf survives it is probably an easy 5 bagger from these levels. Again this may take a couple of years to play out, but I am not sweating over this one. >>
As I see valuation of MADGF compared to others in the sector, it just does not work for MADGF. Value investors are not interested and traders prefer other stocks like MRVC/SDLI. You have long years of experience in investment. You must know that stocks were not priced as herd by comparison of financials, until internet, optical networking companies came to market. Investors are now justifying valuation of new economy stocks. MADGF could be victim in next sell-off; nothing would support at current price level.
<<MRVC I hope will continue to offer more immediate awards. Since you brought it up I just read a post on yahoo indicating that the Luminent IPO will be announced no later than July 27th.
Between Zaffire and Luminent, that will cover the current market cap of MRVC easy. only 12 other subsidiaries to go.
>>
I strongly agree with you on MRVC. Those who hold MRVC need to be cautious. What bothers me is that Luminent IPO is imminent but short positions were created in recent sell-off to 55. Who can afford buying back Luminent shares for their short positions? I believe one thing; buy on rumor and sell on news. It would be sell-off when MRV declares distribution of Luminent shares.
<<FWIW I expect 55 to be pretty good support and unless nasdaq caves I expect a good bounce from these levels, and more than that once the ipo filing takes place.>>
You hit mark in the sell-off last week.
Regards, |
