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: Robert G. Ghazey who wrote (5639)	10/27/1997 6:48:00 PM
From: ED PLOPA	Read Replies (2) of 42804

My initial analysis of the numbers: Sequential growth: Sales 6.3% Net Income 13.9% I don't consider the sales growth to be a ball buster. Current ratio increased from 3.3 at 12/96 to 4.7 at 9/97 as can be expected. It looks like most of the cash that was raised went to a noncurrent asset account called investments (73 million.) Gross margins increased over year ago q from 41.4% to 43.3%. The existing stockholders SUFFERED 30% dilution as shares o/s increased from 19.7 m to 25.9 m. Sequential sales increases for the last several q's 06/96 to 09/96 16% 09/96 to 12/96 37% 12/96 to 03/97 15% 03/97 to 06/97 11% 06/97 to 09/97 6% Is growth slowing or what? From this analysis, it's apparent to me why stock fell from grace prior to earnings release(irrespective of meltdown). Now the stock is again held by true believers. Other item worthy of mention: if company can do another .23 in q4 then for year they would do .85 which would give them a pe of 32 with stock priced at 27. Zacks shows analysts expect .86 so I'm not too far off. Secondly, analysts consensus for FY98 is 1.28, which is 49% growth year over year. At price of 27 then stock is currently selling at 21 times 98 earnings. Can you say, bargain??? Ed Plopa

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