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

To: ED PLOPA who wrote (11361)	12/2/1998 7:45:00 PM
From: Sector Investor	Read Replies (2) \| Respond to of 42804

<<With the "hoard" of cash that company has at this time what a better way to signal to the market that everything is cool and that the stock is undervalued than by buying back a few million shares. Even an announcement that they intend to buy some back would generate some confidence.>> As I mentioned after I attended the annual meeting, I think management is preserving and building cash at this time, partly due to concerns about T/O bids at these low levels. The cash figures into this somehow, as does the doubling of the authorized shares, and I think it is currently overriding any other uses for this money, such as acquisition or share buyback. This is why I am speculating out loud about insider buying rather than a share buyback, as the former increases their ownership (and control) without reducing the float, while the buyback shares get retired, reducing the float and does nothing to help the control aspects that I think management is concerned about, while reducing their cash. You have to remember, they built this company from scratch through years of hard work. I think they feel it is "theirs" and don't want to see someone else reap the benefits of their work. That's why any buyout offer now based on these price levels would be like a slap in the face to them, while many here would be very happy. As far as the "Announcement", they already did that for 1 million shares, but I don't think (not sure) they have actually bought any shares back yet.