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

To: CMS27 who wrote (6626)	4/30/1998 3:09:00 PM
From: Grantcw	Read Replies (1) \| Respond to of 10479

Scott, I agree with many of your thoughts, if not all of them. I'm also banking on the Gigamux to really start this stock off and running as I'm not so sure about the Net+Arm's continued competitive advantage. Logically, I think that other companies can copy the Net+Arm pretty easily, but if that is true I wonder why they haven't. That and the fact that they already have 12 design wins makes me just confused about the viability of the product. I hold a small position right now that I bought a few weeks ago, and I'll give you my reasoning for holding in the near term. Osicom was profitable last quarter and I don't predict a lower EPS next quarter. The IQX sales are starting to kick in big time, Net+Arm should contribute a million or so IMO, and the Gigamux has been selling to smaller customers at a decent rate. All in all, there will be a few more million in high margin revenues hitting the Income Statement. A couple of positive earnings growth may get the attention of wall street regardless of the hyping of our new products. See ya, Grant

To: CMS27 who wrote (6626)	4/30/1998 5:05:00 PM
From: craig crawford	Respond to of 10479

<< These stock deals "private placements" appear to be very convoluted and difficult to understand >> You got it. Osicom likes it that way. I never have taken the time to figure out exactly how many shares would have to be issued to satisfy the obligations outstanding, because it's not really necessary. All it takes is a scan through the SEC filings to see that it is very complicated and not in the best interests of shareholders. << I'm not disturbed that this has taken place, what is disturbing is the methods, they seem quite expensive and from a share holders prospective, dilutive. Perhaps there was no alternative available. >> There are alternatives available. Notice that companies who have genuine breakthrough technology and real prospects have venture capitalists who fall all over themselves to fund them. If they are already public successful start-up companies they can do secondary offerings. Notice all the internet companies who have done secondaries. SPLN, NTKI, NSCP, etc. AMZN just did a debt offering for $275 million. CIEN did a secondary. Successful companies attract money to them. I don't want to hear talk about how poor little Osicom just needs a chance to market their wonderful products. Osicom raised well over $50 million in stock in the last two years, and who knows how much during the course of it's operating history. Osicom may have raised more cash than their entire market cap of $90 million. That is a HUGE amount of money to burn with little to show for it. Do you know how much capital Ciena raised through it's private financings??? A total of about $40 million. See for yourself. ciena.com CIEN is slated to do $600 million in sales this year and will more than likely earn more net income than FIBR will have in sales. WHERE DID ALL THE CASH GO OSICOM??? WELL OVER $50 MILLION IN CASH GONE IN TWO YEARS. If that article posted yesterday was correct (Chada was spelled without an h but I am assuming it was the same Sharon Chadha), Sharon Chadha had $2 million lying around to drop on a failed magazine. Somehow it seems like the Chadhas have made out just peachy WHILE OSICOM HAS RACKED UP OVER $30 MILLION IN LOSSES FOR THE LAST TWO YEARS, frustrating shareholders along the way. It's apparent that FIBR doesn't have to succeed for the Chadhas to live an extravagant lifestyle. I consider being able to spend $2 million on a magazine living pretty well. << There also has been floated the idea that these systems sales can not be publicized beacuse it is possible a customer would want to somehow hide the fact they had 16 channels on the same fiber, for which they are paying someone a lease. >> Whoever told you that should sell land on the moon. What a crock, companies that have partnerships with Osicom have to keep it a secret and now Osicom's "customers" have to keep quiet about the Gigamux's that they purchase? Surely you are not that naive, Scott.