splain this to me Flint.
Osicom purcahses BWAI, which leads to Barrons article, maybe Barrons was full of crap but they had no story until a networking company bought a former building supply company, for the stated purpose of providing low cost manufacturing. Osicom now will sell the factory after just two years. "Oh hey they will get big bucks for factory, this very very good." What about the equity dilution the purchase caused, will they use the money to buy back the shares issued to buy it in the first place? I kind of doubt that. And what is this a factory reselling company or soemthing, is Osicom some kind of reit?
Osicom takes a stake in ABCN and even recently still claims it as potential business. Since then ABCN was sold by M Group to financially troubled Ucom, who now owns a non controlling 20% stake in the Lao Star project. Now you have to wonder what happened to Osicoms exclusive supply agreement with ABCN who now is a subsidary of UCOM who has been reduced to a 20% non controlling partner in L-Star. One has to wonder if the original ABCN deal is still worth mentioning by management. I guess they know something that I don't and that is not very apparent by looking at where ABCN is today.
Osicom dilutes equity 100% in 2 years. Yes my cost was about 20 per share, but even if we reach 20 per share my equity stake would still be 100% less than it was. Has anyone who owned for 2 years been able to average down thier total equity, not the just the total cost? Very doubtful.
NEC RBOC hunting liscence. History or what? What about the RBOCs, slow to buy? Well Lucent/Cienna have been awarded Bell atlantic contract and whats scarier they are working to make thier equipment interpotable. All that Cienna long haul stuff already installed and now Lucy's DWDM is able to work with the same management protocols and software? Looks good for LU.
broadband-guide.com:80/lw/news/news5981.html
"Lucent has worked with all of its Bell Atlantic cohorts before in a network management situation, except CIENA. Szelag reports that the necessary negotiations between the two DWDM rivals has already occurred, and incorporating management of the CIENA systems should not prove problematic, despite the unique nature of the application."
Sorry Flint but the RB's cheerleading core didn't make me sell, they made me a little sick and probably added to my negative feelings towards Osicom. But after a long time, after taking the risk, after hoping agaist hope for two years, these are some of the things that made me sell. Fight on brave soldiers, yes I agree they have a chance, they have always had a chance. It has always been just about to pop.
Regards,
Scott |
