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

To: akmike who wrote (26011)	10/24/2000 1:31:19 AM
From: architect*	Read Replies (1) \| Respond to of 42804

So $120M to $150M in sales seems reasonable for LMNE FY 2000 revenues? Nortel controls 43% of the world's market for fiber optic equipment and Nortel NT trades at 7 times "this years revenues" LU controls 15% of the world market for fiber optics equipment and trades at 2 times revenues. JDSU trades at 51 times revenues and derives 20% of revenues from NT and 16% of revenues from LU. Nortel's optical revenues are expected to surge this year by 100%, to $10 billion. with a $30 share price for LMNE's this yields a multiplier of 40 times revenues. With a 40 times multiplier Nortel NT would be worth $400 billion, based on year 2000 optical revenues of $10 billion. This is double NT current market capitalization of $200 billion. This valuation discounts Nortel's additional $11 billion in telecom revenues to zero times revenue. hoovers.com biz.yahoo.com FWIW I believe it is easier to value the rest of MRVC at $2 Billion than to value LMNE at over $2 Billion.