**OT** Sad letter from MRVC thread.
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To: Dee Jay (10407 )
From: signist
Friday, Aug 28 1998 4:33PM ET
Reply # of 10446
A sad day for me...here's what I had to tell my daughter
Lorraine LoBianco wrote:
What the hell? $6?
Hi Lorraine,
Yesterday, MRVC announced their earnings will fall short for this quarter 10 to 15% A first for this company for over 30 something quarters or so.
The SEC recently has announced that it was alarmed with companies that have acquired other companies, i.e. Lucent technologies Cisco, and on and on, and then the purchaser(s) have been writing off unusual
amounts thereby hiding the fact that the company earning's may not have been increasing and this became the accepted
(legal) thing to do. Then, people that short stock look for small companies acquiring companies and spread lies and rumor
that the SEC is investigating said company specifically. They have been doing this for years but this time they got lucky with
recent SEC recent concerns being made known publicly. In my opinion, this prompted MRVC into making this announcement.
If the people that short stocks for a living spread outright lies,(in this case they did) they
can go to jail but in this particular
case by management's silence on this matter tells me they do not intend to prosecute
these people as it would attract attention
to Management's past accounting procedures and people that resort to this know this
would be the case.
It is my opinion that MRVC management has used this method of accounting before to
hide earning declines and this time,
with people who feed off other people's fears and spread rumors of SEC specifically
looking at MRVC, which has not been
reported anywhere, decided not to continue to use GAAP (generally accepted
accounting practices) so yesterday they
announced that their earnings have slowed 10 to 15% for this quarter only.
I am very sorry I talked you into investing your hard earned money in this company as
the Management of MRVC lied to my
face when I visited the company last year when I asked them if they planned to support
shareholders. In fact, they don't give
a damn about their individual shareholders and have not been creating a respected
company purely by their hard, honest
work.
No, I can't sue them personally for this however I wouldn't be surprised if a class action
lawsuit would surface soon.
This would be bad for everyone as it often taxes small companies assets to fight them
and most often just has a snowballing
effect to the demise of small companies.
This is a sad day for me especially because I involved you in this company. It still has large amounts of cash (duped from new investors recently under the guise of
the need to make more acquisitions
and ramp up capabilities to produce more products, in my opinion) and if you hold the
stock for approximately 6 months to a
year
you probably will get your money back)
We will have to talk about how you might still
be able to buy the house you have
been looking for as obviously the money you counted on or I made you believe you
would have with your investment in
MRVC will not be available to you now.
You are aware that Your Mom and I have significantly invested in this company and
worst we probably will have our
margined (borrowed money) called (demanded to be paid immediately. While at this
time, this situation will create a hardship
on us,
we will be ok...I think.
This has definately changed my outlook for this company. It may regain it's stock price
but will never repair my disappoitment
with being involved and invested in this company.
Again. I am very saddened and sorry I involved you but you will not lose your money
until you sell or if the company files for
bankruptcy which, in my opinion, will not happen anytime soon.
Love, Dad |
