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

To: David Semoreson who wrote (9816)	8/2/1998 3:11:00 PM
From: D.E. Lee	Read Replies (1) \| Respond to of 42804

A year from now we will all remember this and have a good laugh (while those who sold because of Pinks rants will have a good cry). Good luck to all. David, Agreed. The nice thing about MRVC at this point in time is that a significantly larger proportion of those investors who are now long are far too intelligent to be spooked by the FUD-mongers. The quality of posts (and posters) on this thread merely confirms this. Nothing counters fear better than knowledge. Thanks to those on this board, I can sleep well at night. Given that Mr. Pink spends a notable amount of time posting in the wee hours of the morning, I would hazard to guess that he is less lucky in this regards :) DL

To: David Semoreson who wrote (9816)	8/2/1998 3:42:00 PM
From: Bruce L	Respond to of 42804

David: Great post or should I say repost. Good to see that we are both bottom fishng in this other great stock. Eventually the market has to wise up and take notice of the absolutely outstanding 34 quarter straight record of this brilliant little company.

To: David Semoreson who wrote (9816)	8/2/1998 6:25:00 PM
From: Jacob Snyder	Read Replies (2) \| Respond to of 42804

my rules for companies to invest in: 1. Must be the best in the world at what they do. Must have a franchise. I've read most of the last 200 posts on this thread, and I haven't heard anyone (even people who are very long the stock, or who seem to work there) make these statements about MRVC. The consensus seems to be: good technology, good people, average execution, poor marketing. CSCO, LU already have the brand names. Small companies in niches where there is a csco,intc,msft,amat,etc seem to grow fast, until they get big enough to be noticed, and then they get gorilla-stomped. I'm afraid this stock could be on the same trajectory as BAY or SIII or Netscape. No, doesn't meet this test. I've always found it pays to pay for the best. 2. must be growing EPS by at least 20% per year. Yes, meets this test. Actually, the sales growth is more impressive, because it's a more reliable number. 3. must be undervalued. The current PE (21,based on trailing earnings) is less than the expected and historical EPS growth rate, and at the low end of the 5-year PE range (18-89). P/S, P/B, show same pattern. Firm support for the stock going back to early 1996, at about 18. Yes. 4. Must have a long enough track record to adequately evaluate them. Doesn't quite meet this test, because growth depends on moving upmarket, and getting big orders from big companies, rather than selling cheap products to small companies. They haven't really demonstrated competence in this. No. 5. Are sticking to an area of core competence. I think companies can, at most, do one thing really well, so I don't like conglomerates. 80% of sales in one area. Yes. 6. Are funding growth out of cash flow (not selling more shares, or bonds). No. 7. Have an excellent balance sheet, so downturns are an opportunity (to grab market share) rather than a danger (of death by cash-flow starvation). 4.90/share cash, little LTD. Yes. 8. Have no big current or potential liability. Looks OK, they don't make products that kill people, don't have any big lawsuits pending, haven't irritated the DOJ, no unfunded pension liability. Yes. Yes 5, no 3. I need 8 out of 8, and #1 is the most important. I'll keep looking. Thanks, dobr, for pointing this stock out to me, this was a good exercise.