Barron's Writes An Interesting Piece On MRV Communications (MRVC)

MRV Communications (Nasdaq: MRVC) plans to take public its optical- equipment business, which it calls Source Photonics. This is a tangible sign MRV "finally is going to force the street to value the separate entities at their respective multiples, which we believe will unlock tremendous value," says Leo Saraceno, director of North American equities at Sun Life Financial, which has accumulated nearly 10 million MRV shares.

MRV has three key businesses: optical unit, a network-product business, and a network- integration unit in Europe. The optical unit makes equipment used in fiber-to-the-home networks for streaming videos and other high use data, and it has customers Alcatel-Lucent (NYSE: ALU) and Motorola (NYSE: MOT).

Analysts argue that the market currently values MRV's non-optical business at next to nothing. Barron's said MRV Communications has very limited downside at this price.

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