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Technology Stocks : Osicom(FIBR)

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To: David Pawlak who wrote (6643)5/1/1998 2:04:00 PM
From: CMS27  Read Replies (1) of 10479
 
David,

I don't quite understand this. They could short the shares prior to this registration, I imagine that the short they make can be covered by the shares they own. They have equity in those shares so shorting is not such a risk. They just have to be able to hang on until the shares are registered for sale, in order to be used to cover a short position. Am I making sense? So if they went short and FIBR started to go up before they could sell, this would be a bad situation. But if they went short and made money, they could then make more selling the shares they own when they were registered for sale. So what do they care for the success of Osicom, they never needed the stock to appreciate. They made plenty of money, both down and up. The fly in the ointment for them would be a rising stock price. Maybe a few well placed articles could help that.

Sorry to sound as if I'm hunting for conspiracies, but I'd really like the education of understanding these deals. It really doesnt matter to me in terms of FIBR. I have reduced my position and consider them more a speculation than ever, figuring this out is not motivated by my position in FIBR. I just want to take this opportunity to understand this stuff.

Anyway thanks for any explanation you can offer of these financing deals.

Scott
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