Actually I am somewhat encouraged that todays volume was not much more than the average (less than 1.5X). Focusing on the positives, I believe MRVC has decided to put all the "bad" into this quarter:
- $7.5 million of restructuring charge
- $3.1 million of write-down of discontinued products
- $9.9 million reclassification of purchased in-process technology charge as intangible assets (This avoids the trouble FORE is going through, now, as far as SEC is concerned.)
- overly cautious CC tone to fend off any kind of suits
After all these, I don't know what is left. Of course, MRVC was smart enough to take advantage of the market situation and made $4.4 million by repurchasing their own convertible notes.
Now, MRVC can concentrate on building new products with higher margins, and make their investments into new start-ups grow. In this relatively high valuation market, the growth is the key. Once people smell the MRVC's growth potential, the stock price will get pushed up high pretty fast.
So I will sit on my long shares, for now, for better days.
Some silver-lining in clouds from Dow Jones Wire:
------------------------------------------------
February 17, 1999
Dow Jones Newswires
Jefferies' Hogan: The Worst Of Market
Turmoil Is Behind Us
Dow Jones Newswires
NEW YORK -- The stock market may be on its way to a comeback after
several days of steady downward movement, said Jefferies & Co. analyst
Arthur Hogan.
"We don't have enough volume to confirm the downward move," he said in an
interview with CNBC.
Hogan said the cash that has flowed out of the market as a result of a recent
technology sector selloff on valuation concerns is now sitting on the sidelines,
waiting to go to work.
As a result, it may be a good time to pick up some of the most established
companies while their stocks are still cheap, he said.
Among the potential bargains on the market, Hogan named International
Business Machines Corp. (IBM), Compaq Computer Corp. (CPQ) and Intel
Corp. (INTC).
- Justin A. Oppelaar; 201-938-5175
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