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: Mr. Pink who wrote (10107)	8/19/1998 7:36:00 PM
From: jjrocket	Read Replies (1) \| Respond to of 42804

Mr. Pink, what are your short-term/long-term expectations for MRVC? I've been day-trading MRVC for awhile now, only long because I haven't the guts to short this stock. I'm just curious as to what price range you plan to cover? Thanks, Atlanta

To: Mr. Pink who wrote (10107)	8/19/1998 8:47:00 PM
From: David Semoreson	Read Replies (1) \| Respond to of 42804

In effect they have taken their profit and "lost" it buying & restructuring broken businesses in order to grow more quickly. They have written it off rather than capitalized it as goodwill.... I think that glass is half full as they are building a serious company for the future. There is a big difference between structuring a deal to minimize taxes and defrauding investors. You have suggested the latter which I find highly unlikely given the kind of people running the company. If they capitalized instead of wrote off, the difference going forward would be earnings (and taxes) reduced by the amortization charge. Even if that were the case, these guys are growing quickly and trading cheaply as a PE multiple. This is not like some of these companies growing at 20% and trading at 30-40 PE multiples. In any case, why don't you tell me the worst case scenario for the amount the SEC would make them capitalize. Then we can refigure taxes and earnings for the past, and going forward. Lastly, you seem to indicate that any company that is profitable but doesn't generate cash is a short. Is that correct or is there more to the magical formula? Insider info from the SEC perhaps? Or those spies that saw the sales staff fleeing? Keep up the conversation ... lets get detailed. ** David