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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: sammy levy who wrote (4346)	3/7/1998 7:53:00 AM
From: Mama Bear	Respond to of 18691

All: After reviewing the latest quarterly report and conference call of Osicom Technologies, I am reversing my position and will begin to build a short position Monday. It looks like what they are really good at is producing shareholder dilution. Fully diluted shares increased a whopping 2.5 million, from 18.8 million to 21.3 million. There were less than 10 million in late 1996, and no appreciable progress has been made toward turning the company into a profitable entity. Previous to the shareholder's meeting in December 97 there were 20 million authorized. There was a proposal (which passed) to increase the shares authorized to 50 million. Shareholders were promised that these shares were only being authorized for "future needs" and would not be issued. Now there are 21.3 million shares. Another promise broken by Osicom management. I'm willing to bet that the dilution increases faster than any potential revenues or sales, which management promises is just around the corner. To me, the only question is how quickly the share count will increase to 50 million. Barb