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

To: Saul Feinberg Jr. who wrote (9689)	7/29/1998 10:29:00 AM
From: Saul Feinberg Jr.	Respond to of 42804

Chris, Acquisition accounting is a tricky business. Very experienced people have been screwed many times over. Furthermore, considering you are short, you are going against the market's upward bias, the upward bias of economic progress, and the incentives of people(management) who own 25 percent of the shares. (yup that's more than the total short interest out there). Did you ever think that despite the rise in short interest to 4.0+ Million shares, stock is not yet selling for 12 dollars? This, despite management's lack of communication with the street, is a sign of relative strength. Don't get lulled into thinking you have X gains on paper. When you call the broker to realize the gains, it may be too late. Ever heard of "margin of safety"? Well, here's an advice to shorters like you: If you're smart, you better know what you are doing. If you're not, you better not do it! --

To: Saul Feinberg Jr. who wrote (9689)	7/29/1998 12:32:00 PM
From: Seth Leyton	Read Replies (4) \| Respond to of 42804

Saul, your short squeeze theory is inaccurate. The increase in the shorts is due more to the Bond issue than to a "Bet" against MRV. As I've posted before institutions short the stock against the bond. A 5% yield on a "junk" bond is below market. Therefore the bond will trade at a discount to the expected market yield until the share price is within conversion. A good example of this are the IVAX 6.65% convertibles of 11-15-01. They trade in the mid 80s.