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

To: Regis McConnell who wrote (12742)	4/14/1999 7:49:00 AM
From: rascalbythesea	Read Replies (2) \| Respond to of 42804

Good morning Regis...converts don't imply as much as they are assuming on yahoo....Notes are not worth more than 1000 dollars per bond in the year 2003 unless the stock is above $27...MRVC has the right to call the bonds at $1000 in the year 2001 regardless of what the price of the stock is...noteholders can not get $1000 per note until the maturity date in 2003...Price of note went up because with the stock rallying, it gave confidence that the notes will be repaid at maturity and the note might be a good investment with the 5% coupon giving a current yield of about 8.2% or a ytm of about 18%...The reason MRVC might call the Notes in 3 years rather than let them mature in 2003 is that if the stock is above 27 they could force the noteholders to convert to stock at 27 or lose the premium that the note would be trading at at that time thereby not having to pay cash for the notes but issuing new shares...They can also call the notes anytime between 3-5 years at MRVC discretion. Benny