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

To: Dee Jay who wrote (7936)	3/29/1998 10:58:00 PM
From: Sector Investor	Read Replies (2) \| Respond to of 42804

<<I, you're a "cash basis" business, probably a sole proprietor given your brief description. Corporations cannot use that method - they must use the accrual method so when the cash is received has no bearing on the matter of when the revenue is recorded.>> Nope. An "S" corp - and yes, cash based. So, some corps can and some can't? My accountant recommended cash basis for me when the corp was formed.

To: Dee Jay who wrote (7936)	3/30/1998 12:46:00 AM
From: Saul Feinberg Jr.	Read Replies (2) \| Respond to of 42804

This issue brings us back to the post i made. I still wonder if they are desperately getting rid of this excess inventory by selling it for 50% off. Interestingly enough, the discount offer ends on Mar. 31 , 1998, the end of the fiscal quarter. Regardless, the fact that they would offer a 50% discount means there is pricing pressure in the industry, which usually drives down margins, and hurt the smaller companies. A company that is enjoying healthy sales do not have to resort to such drastic sales cuts. The question is, is the 2048, a new product or an old model? Indeed, they maybe getting rid of their inventory at much lower prices. I hope it is not lower than their cost of goods sold. Otherwise, that means they are selling at a loss. I still think MRV is undervalued, but then, how do you really value a high-tech company in the networking industry where a MADGE, or a CS can drop like a rock?