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

To: BlueCrab who wrote (17293)	12/5/1999 10:19:00 PM
From: Sector Investor	Read Replies (2) \| Respond to of 42804

To duffeck and witwit on Yahoo! The debt was taken on in early June 1998. The price fall came in late August. They pretty much have admitted to being surprised by the rapidity that the niche switch market collapsed. I think the money was originally intended for a possible acquisition or to fund NAC and other startups, then later became a security blanket when they realized they would have to morph more quickly into another form than they had thought. I think once the price collapsed, they realized that the now lowered expectations would work in their favor, and they could fund the R&D through revenue, lowering their EPS, and therefore KEEPING expectations low - (I haven't been helping, have I? <g>) and buying them time to complete the morph. So, rather than spend the money, they kept it untapped. Now, they probably will just let it convert, as earnings will begin rising in a couple quarters as these products start selling, covering the dilution easily.