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

To: GS_Wall Street who wrote (6540)	12/18/1997 7:28:00 AM
From: cmg	Respond to of 42804

GREG......earnings estimates have been decreasing because of the potential of increased operating expenses while mrvc doubles its sales force....and of course RD........the market is still unsure how these new sales people are going to contribute in the short term to the bottom line............4th quarter should see increased expenses due to the ramp up of sales people which will hold down profit per share....just my opinion..cmg

To: GS_Wall Street who wrote (6540)	12/18/1997 5:06:00 PM
From: Dan Spillane	Respond to of 42804

Hi Greg, you also need to consider the possibility that since May the number of shares has increased substantially due to the secondary offering. More shares means lower EPS, but same net...algebra. I don't have that data at my fingertips right now but check it out. And by the way, look at the cash on the balance sheet... My take on the low valuation is that the market doesn't really understand MRVC's market sector, and how MRVC is positioned. Throw out the baby with the bath water...and tear out the tub besides! You said: MRVC Earnings est have been coming down since May. The stock peaked sometime in August, while earnings still continued to be trimed. 1998 now stands at $1.24 per share. If this number holds this is the lowest valuation this stock has had since I been tracking (1 1/2 years).