To all:
The Barron's article on Osicom is misleading on many counts. In terms of the book value of equity, it was $2 million (tangible) for 2 mil shares in 1994 and $25 million (tangible as per Barron's) now for 14 mil shares. Thus, the tangible equity value is up from $1 in 1994 to $1.79 now. Barron's adds some intangible in 1994 to make the equity value $5 mil as opposed to $2 mil (tangible), while it halves the reported $50 mil to $25 mil now. If you want to talk about tangible assets now as $25 mil, you should also talk about tangible assets in 1994 as $2 mil. Barron's makes the tangible equity value per share look like a dramatic fall, while it is actually a 79% increase.
The article does not seem to link Par Chadha to the scams, although he had deallt with individuals who bought his faltering UK business in the past. That the buyer might have been involved in some scam does not implicate Chadha. Even Witz (no more in Osicom) seemed to be simply trying to paint a good picture of the companies he worked for. Most CEO's and BOD members self-promote. IMO, Chadha is a genuine business guy trying to build a company. The company, Osicom, has become the fastest growing company in CA.
The real question is what the tangible earnings will be and whether or not NASDAQ will make a regular listing of Osicom stock. The units like Rockwell Network Systems and DPI are solid units.
Quite frankly, the stock appears to have a considerable amount of risk and I wish I hadn't invested in it. But, I like to wait until the earnings are aannounced.
Good luck!
Sankar Acharya |
