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

To: Ploni who wrote (7089)	6/2/1998 12:18:00 PM
From: Bryon Bothun	Respond to of 10479

>>Are you suggesting that FIBR buy out First Boston for 116% of the money they received from them a week or two ago? What would be their motive?<< First of all let me admit that I really have no idea what I'm talking about. I just wanted to pose the question. That said, if ten closes below 3.5 opens the door for FIBR to recall the placement at any time before FB converts there is opportunity here. This could effectively "cap" FIBRs costs at 16% if things start happening and the stock starts trending up. FB can convert at the average of the three low closes over a 22 day period or at $7.99 whichever is lower. Lets say on day 21 the average of the three low closes is $3 but the stock closes at $4. If FB converts at three and sells at four they get a 25% return. If FIBR decides to recall the placement, that prevents the issue of another 2.66 million shares that have a market value of $10.6 million and FIBR only has to pony up $9.3 million to get them back. FB gets their 16% return and FIBR in effect gets 9%. Everybody wins. Again, I'm really just asking the question. Bryon