<<It is also true that competition from the big boys will
only hurt and not help.>>
This is just not true, Saul. The market for FE/GE enterprise ethernet switching is huge. MRVC's higher levels of integration and low cost structure will allow them to take business away from the big boys and make good profits at levels where BAY and CSCO can't match profitably. Also MRVC's customers are the ones to whom price/performance is more important than the Brandname. The more competition the better MRVC looks. Did you notice others like NN and CS are the ones having trouble competing, not MRVC.
<< But with all the stuff that
needs to be done (e.g. fiber-optic connections for
new neighborhoods, gigabit ethernet), some of which
have not been standardized, I think the future for
MRV is not as bleak as the current market valuation
seems to suggest. >>
Bleak? Bleak? Oh I get it. The price is too low, so the "all knowing" market knows things we don't, right? If things WERE bright the price would be up there, right, because the market is smart, right? The old somebody knows something we don't bit.
Why don't you sell, if that's the way you feel?
When the CFO comes out and says he is comfortable for $1.24 for all of 1998 (40% growth), before Q1 is 2/3 over, that can't be right, or the market would have taken us higher, right? Wrong, IMO. The 40% growth will turn out to be conservative.
MRVC's future has NEVER looked brighter than now - and we needed sunglasses before.
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