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Technology Stocks : Osicom(FIBR)

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To: David Pawlak who wrote (6742)5/15/1998 8:30:00 AM
From: David Klein  Read Replies (1) of 10479
 
It has been my experience that convertible preferred stock is not good for the stock price. (The floor is usually very low). I own another company with huge potential that issued this type of stock and the price of the common dropped over 50% over time, almost equal to the conversion rate of the preferred. I hope this is not the case here but these deals are very dilutive. It all depends on the conversion value.
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