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

To: STU who wrote (11467)	12/13/1998 9:55:00 PM
From: Jack Colton	Respond to of 42804

Yeah, STU, I'll comment... " Sell like Hell! jc ps... I'll average down, while everyone sells below book value.

To: STU who wrote (11467)	12/14/1998 12:56:00 AM
From: Bruce L	Read Replies (1) \| Respond to of 42804

<THEY WOULD DO SUCH A MOVE VS. REPURCHASING STOCK ONLY IF THERE IS A SIGNIFICANT LOSS TO OFFSET SUCH A GAIN.> I don't understand the logic underlying this assumption. Yes, I understand that MRVC will have to pay taxes on the $4.7 million gain from the debt repurchase. But what if the management is very confident about the future of the company and doesn't have any immediate need for the $100 million proceeds from the private placement? Maybe they did have plans to use the money for a strategic acquisition but the acquisition fell through; or the decimation of the company's stock caused them to "lay low." From all accounts the company has no problem with cash flow- even given the dramatically increased R&D and SGA expenditures. The companies management has a fiduciary duty to us stockholders to maximize the gain from their possession of this $100 million hoard of cash. Would you rather they invest in 4% money market instruments -for which they also will pay taxes - as opposed to making an easy 50% gain? Aren't they really just paying the lenders back 53 cents on the dollar less than 4 months after it was lent to them?

To: STU who wrote (11467)	12/14/1998 8:20:00 AM
From: Sector Investor	Read Replies (1) \| Respond to of 42804

<<They would do such a move vs. repurchasing stock only if there is a significant loss to offset such a gain. Since the street is expecting a loss of about 2MM this quarter, the company seems to be offsetting a much larger loss with their 4.7MM gain on the debt repurchase.>> MRVC took a $53 million restructuring charge in Q2. As of now they still have a loss of just under $30 million for the year. They are able to take bond gains, if they can and still show a loss for the year. IMO, This has nothing to do with Q4 gain or loss.