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: Yong who wrote (12209)	2/17/1999 11:27:00 PM
From: Ugachaka	Read Replies (1) \| Respond to of 42804

Yong, I fully support your position. There was a CC question about the $3.1 million write-off propping up future numbers. CFO expressed his stance in accordance with your analysis. He was cautious, though.

To: Yong who wrote (12209)	2/18/1999 12:49:00 AM
From: Edward Leinbach	Read Replies (1) \| Respond to of 42804

Problems : Sept 97 - secondary goes off great around 36 a share. Selected members of management walk away multi-millionaires. At the time Gruntal had 1.25 for 98 & 1.75 for 99. Spring of 98 Xyplex acquired - I think this surprised just about all the analyst. August 98 Noam gives glowing conference call. Inventories have risen sharply , but this is due to "Expanded lead times in Europe" & needed for a hot upcoming 4th quarter. Noam stated the 4th quarter was going to be "down right exciting" ( guess he was right aye ) . Fall of 98 MRVC is rushing around desperately trying to raise 200 million in cash despite having about 60 mil in cash . Ends up no takers at 200 mil , but 100 mil was secured. This also surprised analyst ! What do they want 100 mil for ? As usual MRVC doesn't think the shareholders need to be privy to what they are planing for the business going forward. Surprise Oct 98 MRVC warns of upcoming revenue shortfall , on the worst possible Nasdaq downday available. Stock tanks. 3rd Quarter conference call - Noam expressly guided 99 eps at .35 to .45 range strongly favoring the .45 range. 4th - quarter - the inventories they stated they purposely ramped were pushed out the door at discount prices , hint( high revenue, low margin , no profit ) with a chunk being written off entirely. Opps - more excess write-offs to expense. 99 eps have now been lowered to .12 ( a far cry from 1.75 ) Their new products are tucked away into start up companies . Of which they are not willing to discuse due to NonDisclosure agreements. Why are their best products not just developed in house , answer : Managemnet hopes to clean up again off new options programs when they IPO or acquire the companies - more millions for management. As far as 00 eps , how could anyone trust gruntals projections or MRVC's ability not to screw things up farther. Noam has mislead the street & the shareholders quite a few times, Now its time to pay the piper. I heard MRVC owns a Whore House down in Beliz , that they will expense into R&D . However this can't be confirmed since they have a Non-Disclosure agreement with the Beliz secret service. Rule 1 : when management proves they can not be trusted , exit stage left, & find another investment vehicle. Rule 2 : Never forget rule 1 . What has MRVC really gotten from Xyplex , it has cost them about 80% of their market cap. Pretty expensive. They need a CEO who nows how to run a business, perhaps someone from this board could apply for the position ... Please ! Oh a better name for their new startup would have been "Tangled Web "