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

To: Mama Bear who wrote (6871)	5/19/1998 12:14:00 PM
From: David Pawlak	Read Replies (1) \| Respond to of 10479

Barb- That is absolutely correct....and I know that because I checked already. Someone who is short the stock will have to cover not only the stock, but the rights attached to the stock (when the rights become attached to the stock). This, I believe is their defence against arbitrage that is typically involved with these convertible preferred issues. It is also a reason not to be short the stock. Looks like they are finally learning from their mistakes of the past. In addition, the cash infusion to Osicom as a result of the rights being exercised will give them ample cash if they decide to buy back the issue (preferred) at 116% if the stock trades lower than $3.5 for more than 10 days.

To: Mama Bear who wrote (6871)	5/19/1998 12:28:00 PM
From: Scott Ozer	Read Replies (1) \| Respond to of 10479

Exactly! eom

To: Mama Bear who wrote (6871)	5/19/1998 1:13:00 PM
From: bill banks	Respond to of 10479

i believe your thinking here is on the money. essentially what will happen is that the shorts would have to deliver shares on the new entity or cover by buying the rights on the open market, or as a third option they could leave the position as a naked short and arb it out upon trading the new entity. the issue for the shorts would be that their focus 1 and 2 reports would be difficult to accurately report upon such a position and they may or in this case more than likely would say what the hell we dont't like fibr so why should we like en. as i posted yesterday the price of poker seems to have risen. i personally have argued that i believed based on my contacts that the net+arm is the holy grail for fibr, as i do not have enough knowledge of the gigamux to opine and the competition is formidable