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

To: w2j2 who wrote (7430)	2/28/1998 7:47:00 PM
From: Wesley Zega	Read Replies (1) \| Respond to of 42804

>>>what do you think caused the hit that Ascend took?<<< Well, obviously what "The Street" thought they were going to report vs. what the truth turned out to be, might of had something to do with it <g>. I'm just saying a 66% fine for such a surprise is a little steep - even for the "Street Boys".

To: w2j2 who wrote (7430)	3/1/1998 2:22:00 AM
From: Larry J.	Read Replies (1) \| Respond to of 42804

Walter, The primary thing that caused Ascend to take the massive "hit" from Aug. - Dec. was managements loss of credibility with the street. Ejabat came out in late July at a technology conference and offered up a rosy forecast only to issue the 8K 10 days later that confirmed that things were bad and that numbers were not likely to be met. He basically burned the analysts. At a minimum this was good for the last 10 points of the slide ($33 - $22). Michael Ashby (CFO)has done a masterful job of restoring confidence. He even bought shares on the open market (3200 @ $25) to bolster his effort. I believe that a discussion of ASND is relevant on the MRVC thread, as parallels certainly exist between the two situations. Particulary in that MRVC's management is suffering from credibility loss and communication problems ala ASND. (review Bernie Schneiders fuddled attempts at explaining the shortfall and recovery plan before Ashby came in) MRVC surprised analysts and shareholders with the inventory and DSO issues. Obviously they botched the cc. ASND's up 68% in 90 days from its low. I'd say that it's worth determining if we are looking at the same opportunity. Larry