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: Sector Investor who wrote (10850)	10/15/1998 4:14:00 AM
From: Pigboy	Read Replies (1) \| Respond to of 42804

Sector, << Being bought, keeping your name and receiving funding from a parent company doesn't sound so bad, does it? I have a feeling the same will happen with INTC ultimately buying MRVC. >> I have also thought this for a little while. I used to be a shareholder in CHPS before Intel acquired them (I believe the only public co. Intel has picked up). Literally, right in the weeks/days I was asking myself why wouldn't Intel pick these guys up, bc they had (at the time) the lock on the portable market for the Intel/CHPS/LM 3d chipsets (Intel had the desktop)...boom, Intel announced it would buy them. I don't have any idea if we are right about mrvc, but it seems clear that most of the larger networking co's represent too much of a problem with the DOJ (ie. COMS, who also makes NICs and they are much larger than mrvc) and someone like mrvc can be small enough of an acquisition to not get so much pressure from the government and also not to affect Intel's bottom line. Intel can then do what they have been doing with 3D and NICs and lower prices considerably on GE stuff, forcing others to do so too, thereby making networking cheaper, more widespread, and thus...bingo...selling many more CPUs. Intel's main worry, and its no secret, is to make sure they can keep growing as they get larger. << I expect that this won't happen until the price gets back to reasonable levels - sometime next year. I'm hoping to see INTC or someone else first as a strategic partner, which, coupled with several upcoming product announcements would get the price back to July levels at least. >> I disagree strategically for Intel. I believe the time to bargain is when a stock has been smacked big time (just as with the CHPS acquisition...CHPS had been up in the mid 20s and got knocked down to 9 and were sold ~14, I believe). If MRVC makes it on its own back to the mid-teens (a fantasy right now, of course), then Intel, if they wanted them, would have to pay a LOT more than now. thoughts? all imho pigboy