I think such rights typically only trade for around 30 days, and will thus be a rapidly wasting asset. If the new stock languishes during this 30-day period, instead of moving up sharply, these rights will quickly lose their value.
If the new company later makes tons of money and goes up 100 times, it won't do any good to those whose rights expired worthless, or those who sold their rights for chump change. On the other hand, if the assets remained a part of Osicom, such an explosion of sales and earnings would help the present shareholders.
I don't like it; it seems that the only way to be guaranteed a return from the Net+ARM business is to buy the stock in it, which may be throwing good money after bad, considering what Osicom's management has shown us so far.
If Par wants to see his FIBR stock really take off, he needs to leave the company, and go sit on a beach somewhere. |
