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

To: valueminded who wrote (9681)	7/29/1998 5:30:00 AM
From: George Mc Geary	Respond to of 42804

MRV Communications Inc. (MRVC) 22 +2 1/16: --UPDATE-- Gruntal & Co. reiterates "strong buy" on provider of high-speed optical networks integrating switching, routing, remote access and fiber optic concern after the company reports strong Q2 results; raises 1998 EPS estimate from $1.24 to $1.25 and maintains 1999 EPS at $1.73 a share; also raises FY98 revenue estimate from $264.8 mln to $268.5 mln and FY99 from $376.7 mln to $377.7 mln and maintains price target at $43 a share.....hit the wire about 11:30 AM ET 7/28/98

To: valueminded who wrote (9681)	7/29/1998 5:37:00 AM
From: George Mc Geary	Respond to of 42804

15:05 ET ****** MRV COMMUNICATIONS INC. (MRVC) 21 1/2 +1 9/16. Following the release of a significant increase in revenues, shares of provider of high-speed optical networks integrating switching, routing, remote access and fiber optic products have moved higher, although they are off their intraday highs prompted by the sell-off in the broader market. Nonetheless, the latest Q2 results were quite good and should help the stock reverse the recent trend that has knocked-off about half its value. Sales in the latest period rose 66% over the year-ago period to $65.74 million and 8% on a sequential basis, while earnings for the period beat Wall Street estimates by a penny. Given MRVC's current price level, the stock trades at 17 times full-year projected 1998 earnings and 12.5 times projected 1999 earnings. This seems to be a very low multiple considering that top line growth is currently expanding above 60%, while earnings per share are increasing at 40%. The stock trades significantly below its 52-week high of $39 1/4 and MRVC seems capable of grabbing more market share in the fast expanding fiber optics market. Still, while the company appears to have made the transition to a full scale provider of networking services, investors have shied away from small cap stocks, preferring to stick with known quality names. This is understandable given the lack of performance in small and intermediate size enterprises. However, for the patient investor, and one willing to ride out the bumps in the road still ahead for anything that isn't large cap, MRVC could provide a buying opportunity as the fundamentals are positive. In addition, the company is set to introduce new products that should enhance growth opportunities in 1999.

To: valueminded who wrote (9681)	7/29/1998 9:17:00 AM
From: Saul Feinberg Jr.	Read Replies (1) \| Respond to of 42804

Chris, Goodwill increased by 16 million after the Xyplex purchase. Take a look at www4.edgar-online.com the 8-K. I have a question for you. See that client relationship account of 12 million dollars as reported by Xyplex? Well, if u take the conservative route, you zero it. That has to be offset by goodwill. The restructing charges explain the drop in equity(book value). But give it a few more quarters and it should be positive gains. Goodwill accounting is discussed very nicely in one of Buffett's annual reports (I believe 1994 or 1995). Read it at berkshirehathaway.com . Let me ask you one thing? After looking at Xyplex and MRV's balance sheets. How much do you value their technical expertise? I can't see it in the accounting statements. Please help. After all expenses, warrants dilution, and restructuring charges, MRV paid no more than 65 million for Xyplex. Check out how much LU paid for Livingston, Yurie Systems. Hundreds of millions of dollars. And billions for Yurie Systems. Question for you: How much do you think Livingston and Yurie Systems is really worth? Chris, before you blindly follow your Mr. Pink. Be sure that you know something about networking. MRVC is not a YEAR 2000 company, on borrowed money, waiting to explode. If you don't know anything about firewalls, remote access servers, routing functionality, fiber-optic transceivers, terabit carriers,DWDM, you should re-evealuate your position in MRVC. Mr Pink has a lot more money and is diversified enough, that if MRVC goes up, he makes money on the rest. I am not sure you have the wherewithal to put up with that. Here's a short idea. Amazon. Cover your position in MRV and start shorting Amazon. Better yet, why don't you average down on your CFWY, and AGX positions, two losing positions recommended by Mr Pink and friends. Look at them as long-term buys, they probably are worth more than what they are going for right now.