Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: fut_trade who wrote (2934)	11/12/1997 10:26:00 PM
From: Rational	Read Replies (2) \| Respond to of 10479

Peter: Your point, " Bigger companies are looking to get out of this sector." is very valid. This was one of the points I had raised in a post. Quite frankly, I did not attribute much credence to the Barron's article or to inuendos against Osicom management. I was worried only after I heard about revenue loss, continued negative earnings, and the CEO's filing for potential sell/buy of shares. I felt that if companies like ASND can be clobbered badly by the market, where would Osicom stand. If the stock price is lower than that implied by fundamentals, why isn't Osicom's newly announced strategic financial partner, Volpe, investing in Osicom. Volpe could buy Osicom for pocket change. Volpe can seek all information they need for their investment in Osicom. Look at how Mike Milken rescued MCI. No investor would buy MCI's stock and MCI could not sell standard debt in those days. So, Milken invented "junk bonds" and Drexel heavily invested in MCI. This was because MCI had a mission that Milken knew would lead to success. Why couldn't Osicom convince Volpe and have them invest in Osicom? That investment would be more credible than Osicom's stock repurchase, IMO. I cannot figure out the usefulness of the stock repurchase program. Even if the price drops to $1, why should this matter to the well-being of Osicom if the company has solid products that will sell at good margins. The price would automatically rise to (say) $20; all that the company needs to do is concentrate on those fundamentals. The only reason (that I can fathom) for these kinds of announcements (that mislead me time and again) is keep the price up so that some block sales can be made by the informed to the uninformed. [In fact, this point was also just mentioned by another post here recently.] Actually, a decrease in the number of shares due to a repurchase would increase the Loss Per Share, which would look worse than if stocks were not repurchased!! Sankar PS: The above discussion (StockTalk!) should not be construed as an implicit or explicit investment advice.