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

To: David Semoreson who wrote (9015)	6/12/1998 1:57:00 PM
From: Grommit	Respond to of 42804

I just talked to Zeev. He cannot explain today's stock price drop except for overall industry weakness. Said they were looking at a private placement when the price was higher in order to 'accelerate' the business. Said they are not obligated to complete the deal at any price, and they do NOT require the cash for normal business. Said that there are no fundamental changes in the business and if there were they would announce it. I asked about the .30 for the qtr and he said "I told you we are required to announce changes if we see any, and we are making no announcements. That's all I can say." Also mentioned, in passing, that exciting projects are in the works and employees are not leaving the company.

To: David Semoreson who wrote (9015)	6/12/1998 2:03:00 PM
From: Greg h2o	Read Replies (1) \| Respond to of 42804

<1) There was talk that the cash was for operations (why? too much inventory?)> Could be, but I seriously doubt it. 2) The conversion was to be 25-27% over current price (major dilution) Not to fuel the speculation, but to make sense it would have to be at a price of at least 25-26 to make even nominal sense. I would think it should be more like 30, but if the really need the cash for some purpose, they won't have much say so. 3) Cancelled (nobody would take the deal?) If it was cancelled, I would think it would have been due to the weak markets and the decline in stock price-- not because nobody wanted the deal. greg

To: David Semoreson who wrote (9015)	6/12/1998 2:05:00 PM
From: WebDrone	Read Replies (1) \| Respond to of 42804

dobr- Yahoo! is the Wild West- There is a lot of shooting from the hip going on. Remember that everything is speculation until it comes from the company. Let me shoot from the hip over here, before I go fishing: 1) If MRVC is going for more money so soon, with $40Mil available cash/short term instruments- they are not doing it for operating expenses. No way. 2) Xyplex must be in great shape. Company said "remember Fibronics", and I have faith that Xyplex will be similarly good for the bottom line. 3) They look awfully attractive at this price. The big big boys have not taken major slams the way the mid caps have. If MRVC is not going to be sold for too cheap, they must buy, or at least get credit lines in order. Things look pretty bleak, eh? R.