Interesting Post from RB Board
The following was written by Joe Hoane:
I just e-mailed the following to the Motley Fool:
Hello Fools, I hope this gets to the Gardners.
I want to promote a rule breaker to you, which I am long in, as
an individual investor.
The Company is Osicom (NASDAQ: FIBR). I believe that this company
will soon be bigger than Ciena ever was, and for the same bullish
reasons, i.e. selling picks and shovels to the Miner '49ers.
Osicom has a unique piece of DWDM equipment (Dense Wavelength
Division Multiplexing). Osicom has designed this equipment for the
short haul market (< 100 km). The pricing blows Ciena out of the
market. Osicom has won bids against Lucent and all comers in this
arena. DWDM equipment takes the capacity of optical fiber from 2.5
Gbs to many multiples of this, depending how many lasers, at
different wavelengths, you want to add. This equipment can be
retro-fitted onto old fiber. Europe is ripe for this kind of rescue
mission. Domestically, companies like your investment, ATHM, drive
redesign of networks which will require something like Osicom's
product. There are significant barriers to entry in this market.
The value of this should be compared to Nortel's recent purchase of
Cambrian, a private company, for $300 million
Osicom has another product which is just as blockbuster, in a
completely independant way, The NET+ARM. This is explained:
osicom.com
The value of this should be compared with Echelon (NASDAQ: ELON);
$200 million.
Osicom's market cap is about $150 million.
I believe Osicom is currently undervalued by a factor of three, even
completely discounting future value. 3x is the current, buyout value
of Osicom. It is certainly worth a daily double article (for recent
6x rise). Of course I think you should add it to the Rule Breaker
Portfolio.
I will let you do your due dilligence. I will provide some key
links. One unique thing Osicom does is provide RealAudio replays of
its conference calls. The last two are available on its website.
They are probably the most convincing evidence available.
osicom.com
Osicom's business plan, contained in one of the annual reports:
freeedgar.com
The above business plan was filed two years ago. They have followed it
to the letter. Key Idea: "In Phase III, the Company plans to leverage
those competencies and relationships with the goal of capturing a
significant share of the networking market." I believe they are achieving
this. Now.
Osicom's news releases:
osicom.com
Note that both NET+ARM and the Gigamux (the DWDM) are recent industry
award winners. Please note the new partnership with Fore.
If you listen to the conference calls, you find that Osicom has Media
One as one of their customers. Here is the significance of that:
ragingbull.com
This is a hint of why Osicom is a Rule Breaker.
Finally, Osicom is giving seminars on how to redesign the Internet
(RULE BREAKER!!!) Here is the information:
osicom.com
OK, some links.
Osicom website:
osicom.com
Why is Osicom so cheap? (Written by me.)
Message 7610886
Thank you for your prompt attention. (IOU "the fiver"),
Joe Hoane |
