Corvis Corporation (CORV) Message Board

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Technology Stocks : Corvis Corporation (CORV)

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To: im a survivor who wrote (1317)	2/8/2002 1:31:47 PM
From: Geof Hollingsworth	Read Replies (2) of 2772

The Dorsal deal provided plenty of reason to sell, much more disturbing than the revised guidance and bad numbers, IMHO. I was not surprised at the quarter's numbers, given the background of recent announcements by customers and competitors, but I was shocked to see the plan to issue 11% of the company for an R&D outfit backed primarily by the Chairman. Even granting the rationale in the announcement (which I don't-the last thing this company needs is more technology and greater R&D burn), there was no reason to pay 11% of the company for it. Dorsal had no hope of independent financing and I can't imagine anyone else buying them, so why not offer 1%, or better still wait until they file chapter, pick up the IP from the estate, and hire any engineers considered important to the continuation of the technology without any of the entanglements of the existing company? I can only think of one reason-it would not have been in the best interest of the Chairman and his friends. The fact that the Dorsal CEO came from Enron seems both ironic and symbolic.

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