Chris,
Goodwill increased by 16 million after the Xyplex purchase.
Take a look at www4.edgar-online.com
the 8-K. I have a question for you. See that client relationship
account of 12 million dollars as reported by Xyplex?
Well, if u take the conservative route, you zero it. That has
to be offset by goodwill. The restructing charges explain
the drop in equity(book value). But give it a few more quarters
and it should be positive gains.
Goodwill accounting is discussed very nicely in one of
Buffett's annual reports (I believe 1994 or 1995). Read it
at berkshirehathaway.com .
Let me ask you one thing? After looking at Xyplex and MRV's
balance sheets.
How much do you value their technical expertise? I can't see it
in the accounting statements. Please help.
After all expenses, warrants dilution, and restructuring charges,
MRV paid no more than 65 million for Xyplex. Check out how
much LU paid for Livingston, Yurie Systems. Hundreds of
millions of dollars. And billions for Yurie Systems. Question for you:
How much do you think Livingston and Yurie Systems is really
worth?
Chris, before you blindly follow your Mr. Pink. Be sure that
you know something about networking. MRVC is not a YEAR 2000
company, on borrowed money, waiting to explode. If you don't
know anything about firewalls, remote access servers, routing
functionality, fiber-optic transceivers, terabit carriers,DWDM, you
should re-evealuate your position in MRVC. Mr Pink has a lot
more money and is diversified enough, that if MRVC goes up, he
makes money on the rest. I am not sure you have the wherewithal
to put up with that.
Here's a short idea. Amazon. Cover your position in MRV and
start shorting Amazon. Better yet, why don't you average
down on your CFWY, and AGX positions, two losing positions
recommended by Mr Pink and friends. Look at them as long-term
buys, they probably are worth more than what they are going for
right now.
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