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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: whitephosphorus who wrote (14618)	7/26/1999 7:18:00 PM
From: cmg	Read Replies (1) \| Respond to of 42804

replay number?

To: whitephosphorus who wrote (14618)	7/26/1999 8:13:00 PM
From: Sector Investor	Read Replies (3) \| Respond to of 42804

The CC said they are looking at between 7-20 times revenues. They have been discussing for some time and have hired a "first class" underwriter. In the CC, the last question answered was that the IPO would be for "less than 20%" of Optical Access, while they retain the "vast majority". In 1998 revs were $48.8 million, so ON TRAILING REVs 7X= $342 and $20X=976 million. 20% of that is $68 - 195 million. Of course they would probably base on CURRENT Year revenues which would be significantly higher. Also, our MRVC valuation would then have to reflect the valuation of the 80% owned at the market price of the 20% IPO, so we should see a corresponding price increase. I have to listen to the CC again to pick up nuances and fine points.