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

To: mph who wrote (16171)	10/5/1999 11:27:00 PM
From: Sector Investor	Read Replies (1) \| Respond to of 42804

It wasn't me either. I always restrict my blocks to fewer than 30K shares so it isn't so obvious. WAY fewer <ggg> I was doing some further thinking on the upcoming OA IPO and I came across this post on yahoo! messages.yahoo.com At 10 X next years sales of a projected $91 million, OA would be valued at at least $910 million. Using deskart's 20 million shares and an IPO of 20% or 4 million shares, MRVC would get about $45-$46/share or about $180 million dollars. If the shares subsequently went to $100, MRVC's 16 million additional shares would be worth $1.6 BILLION on the open market. Except that I don't think they will IPO that much -OA is just too valuable to them. Their intent is not to raise cash, but to value OA separately by creating a tracking stock. I think MRVC will end up IPOing 10% or less - just my opinion. Even so, at 10XY2000 sales, MRVC should get a minimum of $9 million for each percentage point they IPO off. That $90 million or so would look great on their balance sheet, or they could even buy back some additional debt if they wanted too. Regarding the timing of the IPO, I am convinced that Zev's resignation set back the time tables here. It is inconceivable to me that they bring in a new CEO AFTER the IPO. The new CEO will want to make some of the decisions here. It has already been a month. I don't see MRVC taking more than another month or so to fill this position, as it has to be a top priority item. Give the new person a few weeks to work in and you could still see an IPO in December or January, IMO. I think MRVC would really want to get this done before the end of Q4 - again just my opinion.