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


To: Sector Investor who wrote (24124)9/20/2000 2:00:00 AM
From: Paul Senior  Read Replies (2) | Respond to of 42804
 
If you're saying here, Sector, that Zaffire should be giving stock options or stock in return for business from Williams, I would be very much against that. Zaffire execs might be saying, what the heck --if the their (Williams') Zaffire options/stock turn into winners then our Zaffire stock and our options would have to be winners for us too. But what happens - abruptly happens - when Williams decides to take its profits and dump? And when mutual funds figure that if an early and/or important customer is out, why are we (mutual fund) still holding? In other words, I, as a small stockholder - now have to consider Williams or others as potential sellers - easy sellers because they got their shares at the insider price and have good profits.
Something slimy about it imo, secret stuff - the deals come out months or years later (it seems to me)-- and something about big companies muscling small companies. Or maybe alternatively, if the Zaffire people can't sell their product for decent money and have to resort to giving PRECIOUS stock or stock options to jump start the business or the company's list of customers. For shame.

I'm with Warren Buffett - you don't give out stock willy nilly. If it's a real business, each share has an important future value, each share is therefore precious -- more precious for anyone who looks even slightly long term - more valuable than the current dollars given up in the product sale by the selling company by including those stock/stock options in its first sales deals.

That's my opinion anyway.



To: Sector Investor who wrote (24124)9/20/2000 8:50:52 AM
From: Greg h2o  Read Replies (1) | Respond to of 42804
 
sector, if you " see CWNT and Zaffire added to that list ," don't forget they might get added to the recent negative articles about Williams, regarding the sales of stock (ie, SCMR) to raise cash to further aid their build-out efforts. recent articles were pretty harsh, raising questions about their ability to provide the financial means to continue buildout. i'm not in that camp.