MRV Communications (MRVC) opinions? Message Board

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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: Richard Birecki who wrote (9322)	7/5/1998 11:16:00 AM
From: BEEF JERKEY	Read Replies (2) of 42804

About the recent financing. I agree with others that an announcement would be nice even if it merely stated "MRV has completed recent financing to fund growth". Another co I own recently made a similar announcement at the beginning of April (GSM on the TSE) and is up ~70% since. That deal too was diluting but if the offering dilutes by 10% but ends up being additive to earnings by 20% the investor comes out ahead. You have to spend money to make money. Some have criticized saying why would they do the deal now if they knew earnings were gonna possibly breakout the price and the co would end up with more favorable terms. Remember they were criticized last offering because it tanked the stock afterwards. Those buying into this new offer have to see a price above $27.00/sh. To make it worth while. Obviously there is enough interest to do the financing under these conditions which is bullish for the price. I say if they need the money now its because the demand is for their product now. Do it and get the issue out of the way here at these levels where there is strong long term support. Why wait to do the offering in the middle of a upward trend? We have been given a pretty good hint (insider buying @$23.00) that things are looking good from the inside out. This could be the breakout Quarter. They actually beat estimates by $.02/sh in their revised numbers released in May for the first Q. ($.28/sh actual vs $.26/sh original released number April 25/98 for first Q) This Q the numbers could possibly be staggering and also nice and clean. They got the product and if they need the money now its because they have the demand for their product now.

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