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: David Pawlak who wrote (6742)	5/14/1998 6:18:00 PM
From: Ploni	Respond to of 10479

Oh, goodie, more convertible debt garbage. What's wrong with a traditional loan? I can hardly wait to see how much of my company they're giving away now. Will these be floorless convertibles, allowing Credit Suisse to short-sell the company to a penny a share, knowing they can then convert and cover? Or perhaps this will just be based on the current insanely underpriced price of under $4 a share. Why doesn't Osicom sell warrants, so that ordinary small shareholders can also participate in this game? I'd like a chance to reap greater rewards than I can by holding the common stock; options don't trade on FIBR. Of course, with the common priced at less than $4/share, it would be hard to price warrants very high. Maybe the company could instead sell units, combining common and warrants, and then after the secondary they could trade separately. which was arranged by the investment bank of Volpe Brown Oh, so Volpe did do something other than allow their name to be dropped. They created another path for enriching a corporate entity at the expense of the common shareholder. Thanks, Volpe. Why didn't you just tell Par that he is the big problem, and that if he leaves and the company brings in someone more capable, the stock market would instantly create much, much more value for FIBR shareholders, including himself?

To: David Pawlak who wrote (6742)	5/14/1998 6:20:00 PM
From: David Pawlak	Read Replies (3) \| Respond to of 10479

I would expect that having a major name like First Boston behind Osicom will send a clear message to other Wall St firms that these guys are for real. This is the largest investment in Osicom by a brand name firm that I know of. Tomorrow should be a fun day for the longs! As far as the discussion above regarding Volple's shares in the recently filed S-3... It is my understanding that Volpe had the option of being paid in cash or stock and they chose to be paid with stock. I guess they are pretty confident with the technology and the prospects of the company.

To: David Pawlak who wrote (6742)	5/15/1998 8:30:00 AM
From: David Klein	Read Replies (1) \| Respond to of 10479

It has been my experience that convertible preferred stock is not good for the stock price. (The floor is usually very low). I own another company with huge potential that issued this type of stock and the price of the common dropped over 50% over time, almost equal to the conversion rate of the preferred. I hope this is not the case here but these deals are very dilutive. It all depends on the conversion value.