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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: Lucas Hsu who wrote (258)10/2/1996 4:24:00 PM
From: Dan Spillane   of 42804
 
Lucas, a private placement is used to *get* cash/equity; your statement would seem to be contradictory. Private placements allow small companies to grow bigger...!

I pulled up MorningStar on XYLN too, and they have little cash; in fact small companies generally don't have as much cash. For example, the hi-tech company I work for has only a 5.9/81.2(mil) ratio of of cash/total assets. And we're quite successful, thank you!

Also, the "negative cash flow" you mention would seem to be imaginary. MRVC acquired NBASE, which is now making a ton of profit for MRVC. If you are looking at '94 and '95 cashflow, you need to figure this in. You need to look at 1996 figures.

Cheers
Dan
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