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Roktar's referenced Yahoo message in full, for what its worth:
"From Barney"
"Ok folks, here is some feedback:
First, a word of warning: DO NOT rush to do something stupid on a "rumor" that somebody you don't know is reporting. Before doing anything, do your own due diligence. Also, there is no inside information here, good source but not inside, take it with a grain of salt.
I recently spoke to my source about MRV. I got some encouraging words, MRVC might be let out of the doghouse soon.
- Management is very aware of the low stock valuation, they are taking steps to address it.
- Their quarter is not just good, it is very good. Sequential gain is to be above the range he previously expected (higher than 20% according to him). The gross margin rate is actually going up, revenues might be close to or above $60 million. No bad surprise on the balance sheet either, inventory and DSOs down. The street should love it.
From what he says, I would expect them to do better then beat the estimates by a penny this time.
Other pieces:
- Expect 2 announcements in the next 2 weeks (sic).
- Maybe related to that, new alliance might be in the pipeline.
- PR is being worked on, expect many more releases from now on to keep everybody posted on product developments and deals.
- Liquidity will be improved soon (along maybe with new coverage).
All the ingredients seem to be there for a nice rally before the earnings. Good news is that we might even see some sustained strength after the quaterly results in a break with tradition (i'd want to be careful on record about this one). The technicals are as bad as the've ever been (weak basing at best) but the fundamentals might rescue us.
If this fails, it will give a very bearish tone for this stock and i will not be around to verify my assumption.
As you know, i do not belong to the cheerleading squad (don't have the legs), I do believe that MRVC has behaved like a dog over the past 6 months and that its credibility is close to an all time low. I have been critical of management for messing up many nice opportunities to bring their stock up recently (anybody wants a roadshow...). However, barring a tech stock or general correction, this stock will move up soon IMO.
Good luck to all "
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Doug (long MRVC) |
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