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

To: Sector Investor who wrote (25634)	10/18/2000 4:26:24 PM
From: Bridge Player	Read Replies (1) \| Respond to of 42804

<< This summer, the amount left on the table was staggering -- in some instances netting the underwriters' customers more than the issuers got themselves. In July, for example, Corvis Corp. (CORV) was priced at $36 but began trading at $74. The pricing set the company's value at $1.14 billion. The market said it was worth $2.34 billion -- a difference of more than 100%. "Those deals were done in an environment of almost a casino mentality," says Eric Miller, a portfolio manager with Heartland Advisors, a money management firm in Milwaukee, Wis. "The whole tech market was vastly overvalued, and IPOs just sort of fed that mentality." That mentality's appetite was voracious: The Corvis deal is by no means the most extreme example of riches piling up on a groaning board. In August, McDATA Corp. (MCDT) was priced at $28 but began trading at $72 - an instant bonus to IPO investors of 157%. Last month, CoSine Communications (COSN) went out at $23 and on the first trade soared to $70, an instant gain of more than 200%. Then the Nasdaq began to melt again, as it did in the spring. The total value of IPOs filed in the third quarter of 2000 shrank to $18.3 billion from $32.8 billion in the second quarter, and was about even with the third quarter of 1999. This month, IPO investors have found considerably smaller bounties being placed on their investments. When Synplicity Inc., a maker of design software for integrated circuits, went public last week at $8, it opened at $8.47, a premium of only 5.9%. Regus PLC (REGSV), a British office-services firm, was priced Monday at $18.79 and opened Tuesday at $20, up 6.4%. Endwave Corp. (ENWV), a maker of components for broadband wireless communications, was priced Monday at $14 and opened the next day at precisely that amount. "People are beginning to recognize that in this type of market you're not going to get the big pop, and you might actually have to own these things for more than 10 or 15 minutes," says Miller. "That's bringing a little more realism to this type of IPO." >>