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Technology Stocks : Osicom(FIBR) -- Ignore unavailable to you. Want to Upgrade?

To: Scott Ozer who wrote (2932)	11/12/1997 9:27:00 PM
From: Robert Gordon	Read Replies (1) \| Respond to of 10479

On monday after the stock dropped under 3 dollars, ETRADE forced me to cover my margin account within a maximum of 3 days. (Today I wired the money). If this is the case for PAR as well then tommorow he may be forced to sell to cover. This news release could be an attempt by him to up the price so he will not be forced to dump as many shares. If his shares go for sale we could be in for a wild ride tommorow.

To: Scott Ozer who wrote (2932)	11/12/1997 10:52:00 PM
From: David Pawlak	Respond to of 10479

Scott- That's a pretty good analysis of the buyback as I understand it. The key thing here is that they will be buying back up to the amount of empoyee stock options outstanding, which I believe is somewhere just north of 2 million shares. Also key is that this is not a 1 time event. They will be buying at anytime they feel the stock is undervalued and depositing it into the treasury. The rule under the pooling method of accounting pretty much prohibits a onetime purchase (as I understand it). As Scott said, it must be utilized for a plan like the stock option plan. Someone above mentioned that they would like to see the shares retired. That won't happen because it would jeapordize the past pooling agreements and totally screw up their tax advantages. Someone also mentioned that they had $2.6 million of cash on hand at the end of last qtr. Remember that they have a credit line of about $26 million or so, of which only about $14 million is tapped. Another solution might be to sell receivables at a discount to buy back the stock at less than net asset value. Keep in mind too that they are in talks to possibly sell a unit or a product line or perhaps form an alliance, all of which could generate a nice pile of cash.