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

To: Greg h2o who wrote (8312)	4/23/1998 6:06:00 PM
From: JZGalt	Read Replies (2) \| Respond to of 42804

My rational is that I believe the DSO's and the writeoffs in conjuction with Xyplex are going to muddy the water just enough to let the stock get hit despite MRVC's potential. That coupled with some extreme nervousness in the tech sector of the market and specifically in the "internet" related junk will make people sell into anything they don't understand. Face it, the analysts following this company are not the brightest bulbs on the marque and the company itself doesn't give a damn about how they present themselves to idiots. A general pullback in CSCO and ASND after very nice runs in the past 2 months put additional pressure on the networking group as a whole. Consequently those who play sector rotation are moving money away from this area right now, not toward it. This doesn't benefit MRVC. The VPN "news" wasn't much. It was covered in the previous conference call. After morning weakness, MRVC popped, but ran into a brick wall and ended the day right where it started. phenomenal move ???? Seriously, do you really believe a $5 point move back to where the stock was 3 months ago is phenomenal?? Nice option trade, but it doesn't doo much for anyone who sits and holds this stock. Remember, there was very little reason for the stock to tank on the last earnings report either, but it did. Miscommunication between the company and the analysts caused a hair trigger sell to go into effect as soon as they saw the DSO increase. It didn't matter that it would be temporary. It didn't matter that the company explained why it happened and why ot would be temporary. They sold first and asked questions later. You can write this off as just a baseless opinion, but it is an opinion I backed up today selling my trading position into the strength. I'm still net long and looking to average down when the s%$t hits the fan. If you want to look at how nervous people are right now (and how stupid the analysts are), check out the 5 day intraday chart on NE and look at the timing on the earnings announcement yesterday. NE said it had seen reductions in dayrates for drilling in the Gulf of Mexico, Bammm! Down more than a point in a few minutes despite, great earnings, continued yr/yr expansion and only a small portion of it's revenue based in the Gulf. Dumb, but it happens. If it happens enough you start to notice a trend.