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: Greg h2o who wrote (13099)	4/30/1999 1:34:00 PM
From: Sector Investor	Read Replies (2) of 42804

Greg, I'm not trying to argue against it so much as trying to understand why financial people think it is so important. Food for thought It seems to me that financial people understand the concept of Financial risk and reward very very well. They don't seem to understand the concept of Entrepreneural risk and reward at all. MRVC "risked" - $950,000 - An initial commitment of their valuable R&D and other support staff - Probably larger future resource commitments MRVC GOT: - 19% of New Access and MetroFusion - Options to acquire more in 2 stages ($1 million per stage) at the same low price - Time (12 and 18 months) in which to let the market place examine MetroFusion and make it's own acceptance/rejection of the technology. SuperComm was a superb first step. During this time MRVC also gets continuous independent feedback from their own people as to the technology and prospects. MRVC still owns only 19% and risked only a small amount of money. If New Access flops, they can still walk away. If New Access succeeds, they exercise their options (which probably require them to make addition resource commitments too) and potentially get a return 100+ times their investment down the road. I still like this better than buying back 3.77% of the shares.

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