David Wise,
Great post!
I agree with you completely.
I watch evening financial news on PBS on most days. Almost every time I watch I notice that there are several companies highlighted whose stock prices have change substantially during the trading that day. The changes are 40, 50, 60, 70% and some time even larger. In some cases the stock price goes up, and in some cases it goes down. What does this type of change in the stock price of a company during one trading session suggests? Only one thing. The market did not know, the market was wrong, until that day. In all these cases there are always some winners, and some losers. Chart readers are most often the looser, while well-informed investors with patient are always the winners.
In the case of Osicom, I believe that the patient long term investors will win in the end. I have done as much research as I felt was adequate to make myself comfortable.
At this point I am confident and comfortable that IPO related SEC filing will be done prior to 27th. August. Just consider for a moment the scenario that the papers for the IPO are filed close to the end of the day. Consider a market cap for EN as small as 50% of that for ELON, and that Osicom keeps about 50% of the ownership. Along with that consider tradable rights for the Osicom shareholders. At what price the stock will open the next day? My guess would be that we should see 300 to 400 % increase overnight. That should begin to pay off the longs nicely. What about shorts? I hope that shorts, both reported as well as naked, would cover before that and move along. If not they will get what they deserve.
And interesting thing is that all this should happen some time during next two weeks. Now, if on top of this Osicom got a larger GigaMux order, what would that do to my basic scenario. More fun I guess. It is always possible that I am wrong, but I am going with the my conviction.
Disclaimer: I have made my decisions based on my own research, and I am satisfied with that. Do your own research and act accordingly.
Good luck to all longs!
Afaq Sarwar |
