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Technology Stocks : Osicom(FIBR)

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To: Regis McConnell who wrote (9609)	4/29/1999 11:54:00 AM
From: Brian	Read Replies (1) of 10479

Regis: IMO the stock did not drop 75% of its value because they lost a contract on a low margin product that they were trying to sell off. The NetSilicon division had been estimated to be worth 100 million dollars and the Gigamux Division should be worth more. The "bad news" should not have materially affected either of their core businesses. Although it might delay the IPO of the NetSilicon division, the value of that division remains. The dramatic drop in price was due to huge margin positions of the longs. When the price started to drop, they were forced to sell and the effect snowballed to bring the share price down to an unbelievably low price of $5. Once the forced margin selling was over the price started to rebound to a more realistic level! Brian

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