MRV Communications (MRVC) opinions? Message Board

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Technology Stocks : MRV Communications (MRVC) opinions?

MRVC 9.975

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Aug 15 5:00 PM EST

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To: Michael P. Michaud who wrote (26147)	10/25/2000 5:35:33 PM
From: NeverSeemToLearn	Read Replies (1) of 42804

<<BTW why would you want to short LMNE and be long MRVC? >> I take your point that MRV may not reflect the full value of LMNE price. There can be a discount built into MRV on LMNE price. But one can force it out, I believe, you can achieve that by shorting. Let us assume LMNE IPO is successful and the share price is $50 after a couple of weeks. Suppose I believe that the share price of LMNE reflects the full value. If I have 1000 shares of MRVC, I can short 1500 shares of LMNE (I think each share of MRV will probably get 1.5 shares of LMNE eventually). I can cover the short when I get my distribution. Of course, if LMNE goes further up I will not benefit from that. If it goes down I can cover it if I want to. By shorting LMNE and being long MRV you can force the value of LMNE out of MRVC. Sombody aptly pointed out that there is margin interest involved here though. Dayal

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