I just received my updated Investor's Kit from MRVC today (1-818-886-MRVC).
Same old grey folder, but updated information.
I had previously been using a rough mental calculation of $80 Million that MRVC received in the secondary. The actual number is just over $84 Million. (2,350,000 shares at $35.75).
After spending $35 Million on Xyplex (a steal, IMO), they still have an additional $49 Million to invest or use as they see fit.
In addition, the Bear Stearns Recommendation Followup from November, 1997, discusses the Newbridge issue. They state that Newbridge's contribution to MRVC's revenues "amounts to no more than 3%-4%," and "is not a major concern."
Bear also stated that the new NH 2024 and NH 2048 switches and it's IP switch that started shipping in June could accellerate MRVC's growth
Their estimates for 1998 are $1.24 and $1.75 for 1999 (and that's BEFORE the Xyplex acquisition). Since the CFO came out and stated that he believed MRVC would make it's 1998 estimates, (a bold move on February 24th, unless that is an extremely conservative number), I have to believe MRVC will beat each quarter this year handily.
Remember that the uptrend for GE (Gigabit Ethernet) is just starting. This market is projected to go from $70 Million in 1997 to $2.9 BILLION by the year 2000, (4000% growth), and MRVC is going in with the best ASIC port density, low end prices, the most complete product line of anyone bar none, and now a doubled sales staff too.
And we're currently having a Fire Sale! I'm glad to see people taking advantage of it. At $22 this stock should easily double in a year and probably triple in 2 years.
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