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: rascalbythesea who wrote (41138)	5/28/2003 12:37:05 PM
From: NDBFREE	Read Replies (1) \| Respond to of 42804

A post from Yahoo that might also bear on the runnup. "In about three weeks (June 15, I believe) the convertibles come due. The shorting of the common by the bondholders has IMO been one of the main reasons for the decimation of this stock (taking advantage of the near-collapse of the telecom/fiber market). Bondholders have already received (and expect to receive more) MRVC stock in exchange for their bonds. The lower the stock price, the more they get. Hence the incentive to bash the company relentlessly. On June 15, MRVC will either pay off the bondholders with cash or shares or some combination of the two. MRVC has the cash to pay them off if it chooses to. But the bonds WILL be paid off. Which will leave MRVC practically debt-free, and still with enough cash to weather the down-turn (as long as it doesn't go on indefinitely). Especially if they continue to lower their cash-burn rate, as they have been doing every quarter. With the bondholders paid off, they will no longer have an incentive to try and keep the share price down. Instead, they (as stock holders) will have the same motivation as us longs -- to see it rise. I have been waiting three years for this date to come. After that, I expect MRVC to begin a slow but steady rise back to where it should be relative to its peers. Lately, I have even been adding to my position" This stock is still incredibly under-valued and a steal at these prices.