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

To: kvkkc1 who wrote (27359)11/7/2000 7:36:04 AM
From: Wes Stevens  Read Replies (5) | Respond to of 42804
 
CSCO gave guidance for next year of 60 and will probably make it if the economy does not tank. The problem is that the p/e is 160 current and 75 going forward to next year. 60% growth makes rev's at 30B next year. But for a 75 p/e they need to do that again the year after. The year after that will be 48B. Then they will be down to at least a peg of 1 in two years - but that is if the stock price does not rise.

The bottom line is the stock is priced for a 60% growth rate going forward and it cannot do that for too much longer. In three years that is 77b in sales. There is no way that is going to happen.



To: kvkkc1 who wrote (27359)11/7/2000 8:16:02 AM
From: Sector Investor  Read Replies (1) | Respond to of 42804
 
<<I guess you have to be small and nimble like an MRVC in order to be able to sustain that type of growth.>>

No. You just have to use the pooling method over and over. What would MRVC's earnings growth look like without all the Goodwill?

Anyway, I think their earnings were great. Others did not.


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