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

To: Kamil Nemr who wrote (7318)	2/26/1998 4:24:00 PM
From: Sector Investor	Respond to of 42804

With the acquisition of Xyplex, MRVC is now a "mini CSCO" in terms of Enterprise LAN-WAN solutions. CSCO's customers of course are the largest companies and predominantly domestic. MRVC on the other hand targets smaller companies (Noam said "up to 5000 people" or so in the CC) and is predominantly international. Since the Xyplex acquisition is brand new and CSCO has not come out with a GE product yet, there must be little head to head competition up to now. Now, consider that MRVC's technology is generally better (not sure of Xyplex, but MRVC likes it), denser and lower in price. Since MRVC's overall cost structure is much lower, this doesn't hurt margins. In addition, MRVC's ASICs and optical product capabilities offer additional advantages over CSCO. Now to answer your question. Would a higher-tech, lower-cost, mini-CSCO be attractive to larger fish moving into the data networking field (like INTC, CPQ, even Toyota)? - you bet. Is this about to happen and is that why the price is held low - you got me.

To: Kamil Nemr who wrote (7318)	2/26/1998 4:26:00 PM
From: JZGalt	Read Replies (1) \| Respond to of 42804

I wouldn't look that deep into the reasons for the drop in the price of MRVC. Looks like a knee jerk reaction to the inventory numbers pure and simple. When inventory comes under control, the stock will once again move up. ---- Dave

To: Kamil Nemr who wrote (7318)	2/26/1998 4:33:00 PM
From: Jim Bautch	Read Replies (3) \| Respond to of 42804

Kamil, I could not agree with you more. I realize that the inventory thing justified some uncertainty and the possibility of a pullback, but I have never seen a company with such growth and past performance get so hammered (considering the numbers were pretty damn good). There is obviously more to the story, I just wish I knew what it was. Your suggestion is a possibility, but so is some other type of pending negative news that we just don't know about. Again, I too have been trying to rationalize the steep sell-off, and am completely at a loss (no pun intended). What is your opinion of the stock trading at 24 all day today??? On the Bloomberg there were an awful lot of big block sells going through, but the price never really moved down. Does that indicate that the market maker on the bid was absorbing (buying) huge amounts of stock. Isn't that considered some type of accumulation, where the market maker absorbs tons of stock, keeping the price steady, only to resell it on the ask for a large profit??? Wish I knew who was sitting on the bid all day. Tico