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

To: Cube who wrote (10523)	8/30/1998 11:50:00 PM
From: CountofMoneyCristo	Respond to of 42804

I wanted to say it myself, but am glad a veteran of this thread did. Of course Cube is absolutely right! Averaging down, though logically persuasive in theory, is sheer suicide in practice. NEVER, EVER do it. Markets are not sane or rational. They are very often driven by mass hysteria, and all-around delusion. Read the tape, and believe it. If you're hit by a stock, and are searching for answers here, where a great many people provide information based on their strategic position, and not the truth, it's a sure sign that you need to close out your position immediately. I had a strategy Friday, and though I have been following this thread and others related to Friday's MRVC implosion, it remains the same. When you are at a loss, and your reason for entering a position has evaporated, get the hell out! Anything else is gambling. However MRVC trades Monday and in the near future, holding or entering a position without having at least some kind of decent rationale is akin to mindlessly throwing silver dollars into the slots. It may not be as tacky or public, but the end result is no different. Good luck to all, and may everyone have the good fortune to keep a cool head no matter what tomorrow, or the future may bring.

To: Cube who wrote (10523)	8/31/1998 11:15:00 AM
From: Len Roselli	Read Replies (1) \| Respond to of 42804

Cube, RE: Never EVER average down. That's good advice, and it takes experience to learn that lesson. Occasionally, though, a stock gets way oversold, like MRV, and buying it at this price is not exactly the same as averaging down. Do you really think it's going to go lower? len

To: Cube who wrote (10523)	8/31/1998 11:33:00 AM
From: Greg h2o	Read Replies (3) \| Respond to of 42804

<Never EVER average down.> Just because this is one of The Motley Fools rules of investing does not make it correct. Sure, there are many examples of losers, but I'd be willing to wage a bet there's as many examples of winners in this instance. Oh, by the way, I agree it's not wise to hang on to your dogs just because you don't want to take a loss. But, that's clearly different. In other words, do as much homework as possible and don't average down ONLY because you have a loss. I'll be the first to say I've been hammered in MRVC-- from a $26 entry. I haven't purchased more, yet. However, I think it's wise to see if this is a good use of the next investment dollar. I think it is very unwise to say "NEVER" to an investment if it meets your investment criteria. There are many reasons why this stock has taken a beating, but since I'm not a technician, I'd rather look at whether or not it is a fundamentally sound decision to buy more at this level. I feel I should look at this stock objectively, as if I had never owned it.... Don't you think those that haven't actually owned it might have a differing opinion than yours? I have yet to make form my own conclusion on whether or not I will buy more.... regards, greg