Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: mact who wrote (25460)	10/14/2000 9:50:01 PM
From: Sector Investor	Respond to of 42804

Here is another free space wireless competitor - fSona from Canada They are point-point right now, with a max transmission capability of 1.25Gbps and a distance of 2500 meters. However, click on the different application scenarios they show for their products - all of which apply to OPXS too. On each application, click on the "click for animation" icon. I like the last one "Intercarrier Emergency Backup". With a coming OC-768 capability, we might just be able to delete the last one or two words there. The opportunity in front of OPXS and MRVC here seems HUGE. fsona.com

To: mact who wrote (25460)	10/14/2000 9:56:05 PM
From: Bridge Player	Read Replies (2) \| Respond to of 42804

<< i.e.-the day the LMNE shares are actually distributed, if MRVC starts trading minus their LMNE stake even before the mkt opens, i for one will be very irritated....>> mact, I am not sure exactly what you are saying here. There is no free lunch. Look at it this way. The last time that MRVC trades in the market PRIOR to the actual distribution of LMNE shares to its stockholders, it will trade at the price that the market determines to be: 1. Value of LMNE shares to be distributed: (knowable $ amt) 2. plus: current market value of remaining company, ex distribution. At the instant that a buyer of MRVC is no longer entitled to get any shares of LMNE in a distribution, the market price of MRVC will be ONLY #2: e.g. the value of #1 is no longer contained in the price, because the NEW MRVC no longer has any LMNE component in its price. To take an example, suppose that the distribution is to be effective at market close on a Tuesday; all stockholders of MRVC as of Tuesday close are entitled to their pro-rata share of LMNE stock. Lets say, MRVC is trading at $60 as of Tuesday close, and the value of LMNE stock that they will receive is $48. In other words, the market assessment is that MRVC, LESS LMNE, is worth exactly $12. When MRVC opens for trading on Wednesday, IT WILL OPEN AT $12. (Plus or minus minor fractional differences due to arbitrage, or whatever.) Holders of MRVC as of the previous days close now own $48 worth of LMNE, and $12 worth of MRVC. It can't be any other way. Now, the minute that both stocks trade openly, the market assessment of BOTH companies will start to change, and either or both may go up or down, independently, with no price linkage connecting them. By the close, the REST of MRVC could be worth 6 or 8, or 20. Or any other price. And of course, MRVC option symbols will be adjusted to account for the fact that call buyers no longer will be entitled to any LMNE shares. The COMS market price when PALM distribution took place is indeed an exact analogy. BP