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Author: myfairsadie One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2302  
Subject: What I know... Date: 2/22/2001 8:35 AM
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I'm new to MFNX having purchased a couple hundred shares @ 11 3/4 a couple weeks ago. On the eve of what may be a prolonged Nasdaq slump, MFNX is the only tech holding I've added for a long time. My money is almost exclusively in muni bonds and income stocks. I realize I'll miss out on some tech flyers and also that some of the stalwarts will thrive despite troubled times, but I'm comfortable with my position as stated. My thoughts on MFNX, if anyone cares:

Long-term no one needs to worry about the health of this companies business model or the valuation of the stock; Vangaurd, Fidelity, Janus and Putnam and 61% insider ownership says so.

Short-term anyone in under $20 could see a gain with earnings surprises or a hint of debt reduction or profit margin appreciations from management.

I personally don't worry about the recent slump in MFNX price because I think the reasons for it are extraneous circumstances beyond the control of MFNX mangagement. MFNX 400+% run-up in the last 18 months and the huge expectations placed on JDSU and the sector as a whole are quite representative of what happened to the entire Nasdaq. Think of the Nasdaq index perched happily up at 6000 last March...upside vs downside ladies and gentlemen.

MFNX's business plan has been, is and will be to achieve total installation and functionality of their optical networks in all targeted regions and to achieve this by reinvesting revenues no matter what this does to the appearance of the balance sheet. They are, as far as I know, on target to achieve this despite a major market correction in the midst of a critical ramp up of growth and business. What this means is that the valuation of the company is down based on share value mainly due to market sentiment not declining revenues. This places we, the shareholder in a temporarily precarious position on paper, but if you look at the big picture, we are the ones who will reap the rewards of the future revenues once the business plan has been executed and the companies considerable revenues are being utilized to reduce debt and attain profitability.

For those of you who bought in @ 30-$50, average down: your mutual fund managers are.

G
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