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: Zach who wrote (36175)	10/8/2001 2:02:30 PM
From: Dee Jay	Read Replies (2) \| Respond to of 42804

Zach, I think our problem is that we equate LMNE with MRVC but they are 2 separate entities much the same as the Canadian dollar is separate from the US though in border communities they're probably interchangeable. The fact is, even though MRV owns over 90% of LMNE, the "currency" that is LMNE's stock is equivalent in value to (thanks to the buy-back ratio) .43 MRVC shares but is not interchangeable with MRVC. as Sector pointed out, there are 18 million shares of LMNE in the "float" but only 12 million shares of LMNE have been issued, thus only 12 million shares can actually be tendered to MRV. It seems to me that the owners of the borrowed shares can say "I want my shares back so I can tender them under the X#$!@%& exchange ratio" and thus provoke a real squeeze - unless I am missing something crucial here. Already there is a premium over the exchange ratio - a minutes ago the RT quote on MRVC was 2.99 so on the exchange ratio basis LMNE ought to be selling for 1.287 but in fact it's priced at 1.39 - so it appears that the mark down isn't as much as it would be because shorts are starting to cover...again, unless I'm missing something here. Dee Jay