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Technology Stocks : Osicom(FIBR)

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To: David Pawlak who wrote (5241)2/4/1998 8:49:00 PM
From: Ploni  Read Replies (1) of 10479
 
The problem with a potential takeover is that a suitor would look at the stock selling for $5.50 and would want to buy it for around $8/share, and management wouldn't want to sell for anything less than $20 or so. Even if the suitor was willing to pay $20, it would catch flak from stockholders and analysts if they announced they were buying a stock for $20 that has been trading between $2 and $5.50 the last month.

So if someone wants to buy the company, and is willing to pay $20, they almost have to wait until the price runs up more on good news, earnings, contracts, etc.
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