MRV Communications (MRVC) opinions? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : MRV Communications (MRVC) opinions?

MRVC 9.975

-0.1%

Aug 15 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Seth Leyton who wrote (6627)	12/29/1997 8:25:00 PM
From: WBendus	Read Replies (1) of 42804

Seth, I no longer own any MRVC shares. I sold my shares back when MRVC was flirting with $30 on the upside, just before it broke to $38+ a share. I do think that Asia is a bigger problem than it is being led to be but I also do not think that it is an insurmountable problem. The situation in Asia is recieving considerable attention and I think that the situation will clear, much like the Mexican currency and economic situtation cleared. But unfortunately for MRVC and other technology companies, the next few quarters will likely experience trouble as a result of the current situation in that region. Once confidence is regained and the currencies stablize, the situation should improve for US technology companies that were betting heavily on that region. My emphasis would therefore be on a strong summer rally in the techs as the earnings and revenue climate will likely improve by December of '99. The fear for MRVC is that there will be considerably more competition for them by that time in gigbit gear and the emphasis will be stronger on companies that can provide the end-to-end solution. Things to watch for in this industry for the next few quarters will be; slowing revenues from increased impact of Asia, increasing inventories, sliding margins and the most critical thing to watch for I think will be Days Sales in Receivables. Will these Asian customers be able to meet there obligation in the face of all the short term solvency issues they are facing? Right now all the focus seems to be on the banks and governments that are defaulting on loans but will they be forced to default on their payments for networking gear? Wayde.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next