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: Madharry who wrote (22346)	7/25/2000 10:35:21 PM
From: JP	Read Replies (2) of 42804

MRV Current Valuation (as posted on the Yahoo board): You're correct that you cannot measure their value by earnings. MRV's true value is simply based on fair estimates of what likely acqusitioner's are willing to pay for them or their subsidiaries (i.e. times MRV's % of ownership in each). My best guess is you take the revenue of their sub's that manufacturer commodity type products and multiply that by 100 times (100x revenue is about what SDLI and Nortel's optical division went or are rumored to go for). As for the sub's that have developed leading edge technologies (e.g. Zaffire, Jolt, Charlottes Web, etc.), a value of anywhere from $3Bil to 5Bil per enterprise is very realistic (this is about where similar & recent Lucent, Nortel, and Cisco acquisions were priced). And as I mentioned before, multiply each of these values by the % held by MRVC and wha'la! None of these calculations take into effect future partnerships and new strategic technologies jointly developed by the sub's (this is a seriously over-looked MRV advantage!) Moreover, MRV still has not been discovered by the markets speculative masses -- yet. Of course the above valuations could drop dramatically if demand for fiber optic components and/or technologies were to sub-side. For anyone worried about this happening, please see recent JDSU, SDLI, NT, CSCO, and GLW earnings reports and their associated look-forward statements. Anyone have a calculator?? JP

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