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: STU who wrote (7718)	3/13/1998 11:33:00 PM
From: Eric L.	Read Replies (1) \| Respond to of 42804

INTC & MRVC -- stir that pot! I don't think there is a great likelyhood of a takeover & the advantage to investors is open to debate, but it is fun to speculate & this article from SmartMoney tests out a few options.... most interesting highlights.... Intel's attempts to get into the application-specific integrated circuit (ASIC) business have been disastrous, so buying companies such as VLSI or LSI Logic (LSI), a competitor, is a dicey business. Both companies are working with DRAM vendors such as Hitachi and Samsung to develop integrated DRAM products. LSI has too broad a portfolio, while Intel recently divested its investment in VLSI, apparently over management disputes. If Intel decided to take another look at VLSI, it might cost them around $750 million at today's prices. Throw into the bargain the fact that VLSI could offer Intel expertise in Gigabit Ethernet, a next-generation technology for data networking that will increase bandwidth on corporate networks tenfold. Intel is already working on a chipset for Gigabit products, but VLSI's added expertise could be useful. and Galileo Technology (GALTF) is a 5-year-old maker of Ethernet networking chips. Intel already has assets in computer networking. It holds stakes in companies such as MRV Communications (MRVC), and last year spent $72 million to buy Case Technology, a British company that gives Intel expertise in merging voice phone lines and data networking. Still, there's always room for improvement, and a Galileo acquisition would give Intel the ability to upgrade its current Ethernet hubs and switches. Applied Micro Circuits (AMCC): If Intel wanted to get more aggressive in networking, it might consider acquiring talent in the area of bipolar circuits, a kind of semiconductor that's good for very high-end networking. At a market cap of around $360 million, AMCC is one of the cheapest pure plays in networking. The company currently supplies 3Com and others with chips for corporate and wide-area backbone networks using Gigabit Ethernet. Its products for storage technology, such as Fibre Channel, are important but probably outside of Intel's interests. and Given the prices of many of these stocks, it's likely Grove & Co. will wait for prices to go down before making any kind of a move. But there is no doubt that the technologies these companies possess are ones Intel covets. And while some of these small firms may thrive as independent companies, others are likely to be snapped up by some of Intel's competitors. Memo to Chairman Grove: Not only the paranoid acquire. the link; smartmoney.com