MRV Communications (MRVC) opinions? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : MRV Communications (MRVC) opinions?

MRVC 9.975

-0.1%

Aug 15 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Yong who wrote (12175)	2/16/1999 11:11:00 PM
From: Sector Investor	Read Replies (1) of 42804

I just got back from a 3 hour committment and was only able to skim thru the CC. I plan on listening to it at least twice more (glutton for punishment). One thing most people looking just at the numbers will miss is the statement in the CC that MRVC invested in THREE new companies in 1998, of which they own either a controlling interest or options to own a controlling interest, and which were funded out of R&D expenses! This is a big part of the reason these R&D expenses doubled over 1997, and of course why EPS has fallen off a cliff the past two quarters. It also explains why we saw nothing on these in an SEC filing. The three startups are: Kempton Communications, located in Europe (Product???) NewAccess Communications in California (MetroFusion) Charlott's Web, located in Israel (ARANEA Carrier class Router) So for their "loss" they gain interests in these startups. It is interesting to me the phrasing here. EITHER a controlling interest OR Options to have a controlling interest. That means they have to have controlling interest in a least one already - perhaps just this quarter. Apparently they only have to file with the SEC and report consolidated earnings if they own a controlling interest. Otherwise the investment is written off as R&D expenses. The bad news is that GMs are down further and in the CC they say it may be another 6 months before they turn up. Who knows how the market will react? They are so short term focused (except with the !@#$%^&() Internet stocks), the GM news could keep us down. On the other hand the price is already ridiculously low, DSO down, Inventory down, and the writeoffs have already been taken. 1998 is now past and we are already more than half way thru Q1. I have to say Vivek Rao of Gruntal just doesn't get it. He kept picking on MRVC's Vertical Networking structure (soup to nuts, fiber products, ASICs and Networking). To me this is their BIGGEST strength, the SINGLE MOST IMPORTANT reason to invest in MRVC. He must never have heard the term SYNERGY (let alone spell it). Perhaps he's not the idiot he seems - I'll try to give him the benefit of the doubt (it's hard). More later. I want to relisten to the CC.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next