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Technology Stocks : Osicom(FIBR)

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To: Afaq Sarwar who wrote (6673)5/5/1998 2:39:00 PM
From: David Pawlak  Read Replies (3) of 10479
 
Afaq- Only time will tell whether this is true or not. In my report, you will see though that I mentioned that it will be likely that the company will need to finance growth if the products really take off. To land big orders for the GigaMux, (> $20million) at one shot, I would expect potential customers would evaluate Osicom's balance sheet prior to placing an order.... so I wouldn't be surprised if you see it now that the company has 3 evaluators in Phase III trials. They may be expecting several orders in the very near future.

Is this bad? Well, if there is another financing, I'll decide for myself when I see the terms of the financing and who it is with. What is worse than the possibility of 10% dillution is the thought of passing up potentially large GigaMux orders because of lack of sufficient working capital necesary to build those big orders. Big GigaMux orders will lift this stock up to substantially higher levels, regardless if there is 10% more shares out there or not.
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