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

To: Ben Wa who wrote (22580)	7/28/2000 12:39:40 PM
From: signist	Read Replies (1) \| Respond to of 42804

He believes the proper valuation of MRV is $10 billion. MRV Communications (Nasdaq: MRVC) -------------------------------------------------------------------------------- One look at the stock chart of MRV Communications Inc. (Nasdaq: MRVC) could be enough to tell you that it's not for you. The steep ascent and subsequent decline in the shares this spring made for a wild ride. Recently it bounced back, challenging new highs, but the pattern shows anything but predictability. That hasn't stopped aggressive investors from diving into the volatile MRV, on the hope that some of its forthcoming spinoffs will hit the market with healthy IPOs. Yesterday, MRV filed for a $207 million IPO for Luminent, the first of its optical spinoffs. CEO Noam Lotan (see Noam Lotan ) recently reconfigured MRV into an optical company incubator -- it was previously a traditional networking equipment vendor. In the current IPO climate, optical companies are receiving healthy valuations on Wall Street (see Optical IPO Market Sizzles ). Some people are buying MRV stock on the premise that a couple of successful spinoffs could match the value of MRV itself. Because MRV intends to distribute the stock of its IPOs directly to its shareholders, good performances by the Luminent IPO could be reflected in the MRV stock price. "We think there could be significant market cap in the Luminent IPO that is not included in the MRV market cap, and that the shares of MRV could double in the next six months," says Erik Weir, CEO of Weir Capital Management (Nasdaq: MRVC), a private money-management firm. Weir said that his fund was buying MRV yesterday on the news that Luminent had filed for an IPO. He believes the proper valuation of MRV is $10 billion. The company was recently trading at a market capitalization of $4 billion. lightreading.com -- By R. Scott Raynovich, executive editor, (http://www.lightreading.com)