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

To: CF Rebel who wrote (9200)	6/25/1998 1:12:00 AM
From: Jack Colton	Read Replies (2) \| Respond to of 42804

CF, No, MRVC does not have a seamless product line, that fits all of the needs of corporate or "telco" america. They do have some key components, and they try (successfully) to stay at least 6 months ahead of the technology curve - which in itself is an amazing feat. Any "Johnny come lately" to the lan arena would do very well with MRVC's products - if the "Johnny come lately" has a good name. As for timing, MRVC is the only networker whose stock does not already have a roughly 40% premium added to it in takeover speculation. Look at ASND and BAY... they have been bid up already, in hopes of a lucrative merger... Unfortunately for Bay and Nortel, the respective stock holders did not see everything as rosy as Nortel's management might like. I used to work for a market leading digital communications company that was acquired by Nortel. Within five years, Notel had driven the company out of the market - by not understanding the business we were in - and by placing extremely poor management in charge of the business unit. They drained our cash cows until they were dead, and did not replenish the technology. Our former competitors ended up owning the market that we had dominated only 5 years earlier. I do not know what the management arrangements have been proposed for the Nortel / Bay merger, but I hope the people from Bay get put in charge of Nortel. Nortel has a different concept of "Digital Switching" than what we networkers view it as. Anyway, back to your question... does it make sense for a networking company to acquire "network builders" - Sure it does. It makes great sense... 1) You would gain some good network engineers who can design in your products. 2) You would gain an experienced sales force who can sell your products. 3) You would gain extremely valuable information about the marketing practices and products of your competitors. No one said that you would change the name of the Systems Integrator. Let it be a silent partnership. No need to let the competition know that you are building a nationwide force that can undermine you in your own accounts. It sure beats spending $70 million on establishing a brand new sales force like XYLN did, and then have almost nothing to show for it after a year. That's my thoughts. Any flaws in my logic? jack