Everyone please visit my stock letter website for more info.
members.aol.com
MRVC is a great buy at these levels. The split last week gave us the
larger float, which is helpful.
Here is my recent stock report a few weeks back on MRVC.
Dear Readers:
Thank you for your support and emails over the last few months. The
subcriber base is growing rapidly and the recommendations are up on
average about 25%. Consequently, the future looks bright for the TJK
Market Letter. I decided to take away the day trading record because
it was getting to a point where the list added little benefit and too
much time commitment on my part. I'd rather use that time to improve
the quality of the letter and the information I can give. As some of
you already know, the short report mailing list is back online. I have
an email list of thousands of investors for short reports (recently
did one on JBOH), so if you are interested please give me your email
address. Please note that these short reports do not compare to the
full issues which will still come out on this web site first
(http://members.aol.com/taejkim).
The success of this letter is based soley on the subscribers. All I
ask of you is to please send and forward these issues to all your
investment contacts and add my web site links to financial investment
sites. Thank you. Enjoy and best wishes in meeting your investment
goals. Tae J. Kim - Editor in Chief
TaeJKim@aol.com
MRVC - MRV COMMUNICATIONS INC.(MRVC)
Last Price: 40 1/2 on 6/21
52-Week High: 80 1/2 52-Week Low: 8 5/16
Yield: 0.00% P/E Ratio: 0.0
Corporate Performance 1995 1994 1993 1992 1991
Revenues ($Mil) 39.2 17.5 7.4 4.4 2.4
Quarterly Results 1Q1996 4Q1995 3Q1995 2Q1995
EPS 0.18 0.15 0.11 -0.52
MRVC is leading the way in two of the fastest growing sectors in
technology: fiberoptics and ethernet adaptors. There has been much
price volatility in the past few weeks, but I believe much of
that has to do with the Cabot Letter fiasco. The fundamentals of this
company remain strong. This company has nearly doubled profits and
revenues for the past five years. Furthermore they grew by double
digits in 11 of the last 12 fiscal quarters. And the amazing growth
will continue for the following reasons:
1. Best technology. MRVC is the undisputed leader in speed and
capability. Their new gig adaptors will be 10Xs faster than the
competition.
2. OEM contract with Intel. Intel will begin selling their adaptors.
With excellent brand name recognition and marketing muscle, MRVC is
well positioned.
3. Huge growth in Intranets and multimedia networks. Corporate
intranets will be the rage and MRVC's ethernet adaptors will be right
there. Companies will need fast ethernet adaptors (100megabits or 1
gig for multimedia) and they will likely turn to Intel (MRVC!) for the
hardware. Intranets are basically internal internet web networks which
is proving to be the best cross platform database and information
medium.
4. The telecommunication companies are going crazy upgrading their
fiber optic networks. There is a growing $5 billion business for fiber
optics, and MRVC is leading the way with their transceivers. MRVC is
poised for enormous growth in the next three to four years. Revenues
and profits are soaring, and this is even before OEM agreement with
Intel. They have the best technology in ethernet networking (currently
10Xs fasters than the competition) and a great alliance with the Intel
powerhouse. The forward P/E comes in around 50-70, with growth rates
at least 50% in the next 3 to 4 years. Worth Magazine even listed MRVC
as a candidate to be the Next Microsoft. Although I'm not THAT
optmistic, the future indeed looks fantastic. Recommended. The TJK
Market Letter Performance
Date Stock Price at Recommendation Price (6/21) Percent Gain
12/8/95 SUNW 49 3/8 (split adjusted) 60 +21.5%
2/16/96 DELL 30 1/4 51 7/8 +71.4%
4/3/96 TLTK 7 3/16 5 7/8 -18.2%
Average Gain +24.9%
CHATSWORTH, Calif. -- MRV Communications, Inc. is a leading supplier
of high speed LAN switching and fiber optic transmission products
serving the computer networking and the broadband sectors of the
communications industry. The Company, which emphasizes advanced
technology and leading edge product development, nearly doubled
revenues and profits for each of the past five years. Sequential
growth for the past 25 quarters has been consistently positive, with
double digit sequential growth for 11 of the past 12 quarters.
The Company designs, manufactures, and sells two groups of products:
(1) computer networking products, including LAN switching, and (2)
fiber optic transmission solutions for SONET, ATM, FDDI, Fast Ethernet
and cable TV. Fiber optic transmission products turn electrical pulses
into light waves which are sent over fiber-optic cable to long
distance for campus, metropolitan and nationwide networks. Recently,
MRV started volume shipments of a new module for two-way simultaneous
transmission over one fiber instead of two fibers, which are normally
required for a transmit/receive link. This innovative device is
currently deployed in one of the largest fiber-in-the-loop (FITL)
projects in the United States. MRV was one of the first to offer a
workgroup LAN switch featuring 100Mbps Fast Ethernet uplinks. A key
customer for MegaSwitch is Intel Corporation, which is sourcing the
product under an OEM agreement from MRV. Recently, the company
announced MegaSwitch II, a new auto-configuring Ethernet/Fast Ethernet
switch, with uplink ATM (Asynchronous Transfer Mode) module and a
module for the new Gigabit Ethernet Standard. According to
NetworkWorld Magazine (May 27, 1996), "MRV will become the first
company to announce an actual gigabit Ethernet product, as well as
pricing. It will start shipping in the fourth quarter a full-duplex
gigabit Ethernet module for its MegaSwitch II departmental LAN switch
enabling customers to build a 1G bit/sec Ethernet backbone. This gives
users an upgrade path from 10M to 100M to 1G bit/sec Ethernet all in
one box." /CONTACT: Karen George of Access PR, 310-799-0999,
75333.753@compuserve.com;
or MRV Communications, 818-886-6782, nbase.com/ |
