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

To: signist who wrote (12222)	2/18/1999 1:54:00 PM
From: rascalbythesea	Respond to of 42804

John...the expression is CAVEAT EMPTOR. Remember, management is going to do what is good for management. If this happens to coincide with our objectives, we will ultimately be successful. If you owned IBM or CSCO or GE, the answer would still be the same. btb

To: signist who wrote (12222)	2/18/1999 2:19:00 PM
From: akmike	Read Replies (1) \| Respond to of 42804

John-based on what we know so far, management is investing the money in our business. Whether or not MRV has already acquired majority ownership of these start-ups, they have the right to do so and the owners (us) will potentially benefit if that should come to pass. There could be (and should be) good business reasons for this type of structure. The Board of Directors of our company has a strong fiduciary legal obligation to represent our interests. On a more pragmatic level, I feel much more comfortable with management owning a significant amount of stock than just being "hired hands". As Sector has eloquently articulated, the company has exciting prospects. It appears to me that these prospects were engendered by the current management. They are making a huge bet on their ability to grow the company and even though they are betting with our money as well as theirs, a rational man will admit that they have earned their way to the table. To continue with the analogy, all the cards haven't yet been dealt and I, for one, want to see how the game is concluded. As has been pointed out before on this thread,if our management wanted to dip into the treasury for their direct benefit and our cost-they could legally do so by significantly increasing their compensation. They have marshaled a cash hoard, and thus far their actions show that they are motivated to make our company much larger in size and profitability and their reward, like ours, will come in the form of higher stock value. I'm sure that the ability to daily work toward achieving their goals allows managers to get more psychic income and consequently a lower level of frustration than us passive investors who can only be gratified by higher stock prices. It is probably natural to transfer this frustration into all sorts of emotions including distrust of management. Vigilance is always in order but evidence that the distrust is warranted is not apparent to this writer. Best regards, Mike