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Technology Stocks : Osicom(FIBR)

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To: Afaq Sarwar who wrote (1077)6/7/1997 3:21:00 PM
From: CMS27   of 10479
 
Afaq,

Osicoms web page site is shaping up nicely. They have a new product map that indicates where in a digital communications system they have products. It puts a lot into perspective about their products.

Stock dilution and earnings inconsistencies are part of many recent aquisitions unwinding. These were stock deals with contractual language. The transaction settlement depends on future events in some cases. I don't have a clear understanding nor does anyone else on the final "total shares". I am prepared for any management decision regarding how these transactions are settled in the most cost effective way. I don't see any smoking guns or wrong doing.

This share question surely impacts the short term price. But it is the price that has to be paid to obtain the companies and technology necessary to have a product line that goes from Sattelite to pc or set top box and many other places.

If they are succesful at creating a partnership with a large corporation who had need of such products the current earnings per share situation becomes less meanigful.

Yes this in a manner is speculative but only in terms of rapid growth. Certainly without partnerships they have a chance to sell to indepent digital systems providors and designers who may be hired by the aforementioned large company. A market that is already very large in itself. They have succesfully closed one such partnership with ABCN and they have stated it has the potential to generate $800 Million in revenue over a certain time period.

Yes the tape says this stock sucks. But the tape will not predict a major partnership announcement. According to the last conference call, they are seeking partnerships.

Just my humble opinion as to why I still own this stock. I wouldn't bend anyone's arm either way.

Scott
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