OFF TOPIC
HI ALEX!
You seem to be very knowledgeable in the networking sector, so I would like to ask your opinion of MRVC, which appears to be very strong in FE, GE, and fiber communications:
MRVC: Continues To Lead The Price Performance Curve
Info from Bear Stearns (BEST)
BEST says MRVC is gaining Market Share and they reiterate their
Buy Rating.
RE The NH2024:
BEST says that the NH 2024 has been shipping to major customers
and will be generally available through distributors including
Tech Data on December 1.
BEST views the NH 2024 as a very competitive offering, as similar
switching products by Bay Networks and 3Com are selling for $250
and $290 per port respectively. BEST says CSCO, which dominates
the high end, sells a similar product at an even higher price per
port.
BEST comments that IDC recently released its latest market share
survey in switching for first-half 1997, and that MRV's Nbase
switching division increased its market share in the high-growth
workgroup switching segment from 3.8% in 1996 to 4.6% in
first-half 1997, an impressive 21% gain in six months. BEST adds
that more importantly, this is the first time a major market
research firm such as IDC includes MRV(NBase) in its survey.
BEST says that they believe this reflects the rising visibility
of MRV among customers and industry analysts, which could
eventually raise the company's visibility among investors.
BEST says they believe MRV has the broadest product offerings
in the 10/100 autosensing workgroup switching segment, an area
which could grow to $4.3 billion in revenues in 2001 from less
than $100 million in 1996, a 95% CAGR. Consequently, BEST thinks
that MRVC can achieve both revenue and EPS growth of 40-50% over
the next three years.
BEST believes that MRVC's business conditions remain strong and
the
company continues to enjoy robust demand for its products,
particularly in switching. BEST adds that moreover, demand in
Europe seems to be strong and the company sees no slowdown in
Asia despite the uncertain economic conditions in the region.
BEST comments that at 20x their 1998 EPS estimate of $1.25, MRVC
shares appear very undervalued and should provide significant
return to investors over the next 12 months. They maintain their
estimates and reiterate their Buy rating on MRV stock. |
