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: Duffeck who wrote (25333)	10/12/2000 11:34:30 PM
From: Sector Investor	Read Replies (2) of 42804

Time for a little bit of back of the envelope sanity check here. Using a figure of 70 Million shares outstanding, our market cap right now is $2.56 Billion. LMNE will have 156 million shares outstanding. MRVC will hold 144 million shares after IPO. At a LMNE price of $17.75, MRVC's holdings of LMNE shares ALONE will match this market cap. With sales of $120 million this year that is a P/S of 21. Based on 2001 projected sales, that is a P/S under 13. For comparison, JDSU has a P/S TODAY of 57.8, with a loss of $1.26 per share, and a market cap of $82 BILLION. For the fiscal year ended 6/30/00, JDSU net sales totaled $1.43 billion, up from $282.8 million. Net loss totaled $904.7 million, up from $171.1 million. Who here doesn't think LMNE can reach and hold that level? OK. Then at this price, the net value of ALL THE REST OF MRVC is ZERO, with LMNE at $18. We are sane. We just have to hold on until the market regains IT's sanity.

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