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

To: hedgeclipper who wrote (42445)	11/3/2005 10:46:53 PM
From: mahler_one	Read Replies (1) \| Respond to of 42804

Thanks HC...The number of homes passed has, according to one analyst friend of mine, become somewhat irrelevant. Not that it isn't important for MRV to continue to get the business, but given the fact that essentially no profit is being made by Luminent at the current pricing of their ONT product, does the speed of the build out-and the number of homes passed- really matter? I am very concerned about the forward guidance for Luminent, and unless the OLT product gathers adherents then, given the current level of pricing of ONT products, why even have a Luminent division? CIBC reports that there are apparently no shortage of companies waiting and willing to enter the Triplexer market...is MRV to continue to keep the price at barely break even forever in hopes of preventing competition? One obvious reason to prevent competition is to assure a market for the central office devices that Noam spoke about. If no market for such new devices develops, then MRV is essentially supplying Triplexers as a service with no hope for Luminent to become profitable unless prices can be increased. Noam forecasts ( on the cc ) no profit for the company as a whole for at least three more quarters. CIBC projects gross revenues to increase next year ( about 10 % ), but apparently not enough to make the entire company profitable. While all of us hope for an upside surprise, such lack of profitability is profoundly disappointing. I used to think that Luminent would eventually be sold....given the pricing facts alluded to by Noam and CIBC, I am no longer sure why anyone would buy Luminent. Indeed, with no coverage and somewhat flat company revenues the Champagne appears to be getting flat as well. What will drive the stock price of MRV any higher? Can the other division make up for Luminent? Am I missing something Hedge? m