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: Saul Feinberg Jr. who wrote (9187)	6/23/1998 6:23:00 PM
From: Seth Leyton	Read Replies (1) \| Respond to of 42804

There is no purpose for the money as of yet. This is another of the changes in thinking that MRV has taken over the last six months. They plainly said a couple of months ago that they didn't need any money. Now they've done a deal and will get more coverage and, you're correct, they don't really have a use for the dough right now. But what they have is a free war chest of money that they could use to take over another small company should they need to. With almost 150mm in cash they could take over a company their equal in size should they wish to. This is a good thing. We just have to sit here and wait. Now my back side is a little sore from getting kicked all of the time but it will be worth it one day. I've been too close to this stock and let my feelings overrule judgment.

To: Saul Feinberg Jr. who wrote (9187)	6/24/1998 12:15:00 AM
From: brodway	Read Replies (3) \| Respond to of 42804

Saul, i dont know where you are getting info on the Prudential coverage, but i heard similar rumors from other sources and was wondering where this is coming from? I must tell you however, that your source seems very credible. The reason i say this is because i was watching Nasdaq Level II on MRVC all day today, and Prudential was on the bid the entire day. Not once did they participate on the offer. Likewise, Merrill Lynch stepped up at 21 5/16 and was showing a big bid. I hope that this deal that was announced today can bring some attention to MRVC. Although some may disagree with the rationale of Noam and crew, i think they have made a rather intelligent decision. For one, they went out and borrowed money that they may or may not need in the immediate future. But by raising this type of money(remember this is a company with a total market cap of about $500 million raising $100 million in cash), they have drawn attention from the bigger name brokerage firms or institutions who may have facilitated the debt offering. This transaction may serve as the best promotion possible. I realize that giving up options at 27 in the convertible vehicle may not be a great thing in terms of dilution, but then again who cares about dilution when no one even gives MRVC a second look. This in essence, although somewhat dilutive in the future,will bring the big boys into play and ultimately take us higher as they will realize that this stock is way undervalued. My opinion is that this strategic move was geared more towards promoting MRVC in the big league scene rather than raising necessary capital. Good luck, Brodway.