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: JZGalt who wrote (10882)	10/17/1998 6:11:00 PM
From: Sector Investor	Read Replies (2) \| Respond to of 42804

<<EPS estimates and actuals won't matter for quite some time.>> On the contrary, nothing is more important (except a good CC), since there is no earnings visibility out there now. Q4 is at $0.15 and 1999 estimates are about $0.90 or some such. If visibility into 1999 is restored, the stock will move more into line. I don't see a decent multiple anytime soon, without a major contract/alliance, but I do see the stock recovering to at least fill the gap within 6 months. Several traders told me ASND was dead too back last November and December, with the stock in the low twenties. One said it would never have a multiple point day again (after weeks of lethargic stock movement on very low volume). Another used the same roadkill term you did. It turns out they were wrong. Anyone that bought ASND under $23 (as I did) got a good deal don't you think? I rode several thousand shares up past the mid forties, and June '25 1998 options into the high $30s. It would be nice to do a nice ride again with MRVC in 1999. I have the same feeling now with MRVC that I did then. Fiber Driver could be BIG. My point is that the picture according to management's own words does not appear to be anywhere as bleak as current perceptions in the marketplace - just like for ASND in Q4 1997. If management can be trusted on anything (we know their street sense and marketing is for sh*t) it is on operations of the company. Make your own decisions, of course.

To: JZGalt who wrote (10882)	10/17/1998 8:18:00 PM
From: Bruce L	Read Replies (2) \| Respond to of 42804

<Sector, I don't mean to belittle your efforts, but this stock is currently roadkill. EPS estimates and actuals won't matter ...> I strongly disagee. This company is now perceived as roadkill, but in the view of Sector Investor, and many others, it is anything but. The street now" expects ".12, but as some perceptive poster stated recently on this thread, if the street were even sure of the .12 number, this stock would be trading over $10. IF the company (1) not only makes its number, but (2) significantly overshoots and (3) has a positive CC, there WILL BE pyrotechnics. You yourself recognize that the stock is underpriced for a company that is actually MAKING MONEY. Currently the book value of MRVC is $6.50. The market is treating this company as though it has gone out of business and the net value - after all assets have been sold and debts paid - has been distributed to stockholders. There are many,many small cap tech companies around that are losing money but are trading well over book. If the perception about MRVC changes, this will make a major difference. This is what Sector Investor was saying and I for one think it is a major contibution for which we all owe him thanks. Bruce