Brian:
Thanks for the question. If the company bought at price X, the rest of the market must have viewed the stock repurchase as positive by (2 9/16 - X). Looking at the tick volumes, I GUESS that the company bought at ~$2.5 about 500,000 shares. At this rate, they will need 3 more days to complete their collection of 2,000,000 shares. The price after this artificial support should show the true strength of the company, IMO.
I am not implying that it will drift down or up. I do not have the inside information. Even with inside information, the CEO could not predict where the price would go and bought too many shares on margin! This is because how the market will treat Osicom's products is an important uncertain determinant of revenues/earnings. In any case, those who were willing to sell at as low prices as 2 1/16 (as of yesterday) should be feeling good for the time being.
Many of us do not know the true inside story of the company and how the market is treating the company's products. But, as Afaq has very lucidly described in some of his recent posts, there are those who are testing Osicom's products and those who know this company inside out. He has asked (and no one here ever responded to his question): Why are they not buying Osicom's shares at these low prices? Are all insiders broke? Are others who know Osicom's products broke? I do not know the story!!
Sankar |
