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

To: peacelover who wrote (7860)	3/25/1998 11:06:00 PM
From: Phil Rosten	Read Replies (3) \| Respond to of 42804

<<I think there is something about this co. that we are not privy to. >> Actually there is no mystery here. But you had to see Joe Kernan announce MRVC's last earnings on CNBC. He described MRVC by saying, "You may remember MRV Communications, they are one of those Cabott Letter stocks, some of which have done well and some which haven't". There was no mention of all the consecutive quarters of consecutive increasing earning; no mention of the high quality leading edge products, or anything else. Also, I don't think that MRVC was well served in the placement of the last secondary. Way too many shares ended up in "weak hands" (i.e. short term traders, as opposed to long term investors). As a result, right now most of the action in MRVC is trading interest, (buy for a 10% rise, then go short). Eventually the extra shares will make it into long term investor portfolios, but it is anyones guess just how long that will take. Another factor is the extensive period of growth, growth companies are valued by their growth rate, the longer the growth goes on, the closer you are to the end, and the closer the analysts examine the quarterly reports for the first signs that the end is near. This is basic, and it is really incredible to me that management considers the reported inventory increase a non issue. It may not be a management problem, but it is definitely a big red flag to analysts & fund managers that have plenty of growth stocks to choose from these day. Right now we have a trader's stock, that is still carrying the Cabott albatross around it's neck. I'm afraid it's going to take a lot of good PR. & a lot of road shows before that old bird is buried for good, and the massive volume of overhead shares are exhausted, (or a buy out) for the price to start steadily advancing higher, but it will eventually happen. We just need to have patience... we will eventually be rewarded ... just you wait ... it could happen ...

To: peacelover who wrote (7860)	3/26/1998 8:10:00 PM
From: Richard Birecki	Respond to of 42804

Peacelovcer, AOL definitely trades at a premium, but they ahave a group of near captive morons, who are just getting on the net, to market products too. Their money isn't only made providing access, but for what they do with their members. AOL"s income is residual. That's probably the greatest thing about the net, is that once you cover costs, most everything after that is profit. IE. As revenues rise, profit margins increase at a much higher rate than consumable goods. This is why the Search Engine are valued so highly. (Granted too much but still) MRV has to sell things every quarter. They get some royalties sure, but they still have to sell. Maybe AOL does not deserve the lofty price, but in some ways, it has a very good brand. Richard Bo Outlaw is in Orlando, and the reason the Magic are in the playoffs rather than the Clippers