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

To: craig crawford who wrote (7269)	6/11/1998 5:03:00 PM
From: David Pawlak	Read Replies (2) \| Respond to of 10479

>>How come CIEN has 5 times the sales of Osicom and more net income than Osicom has in sales, all with less employees? Ciena has also been hiring like crazy. Explain that one to me. << Uh... Haven't I already gone through this about 5 times with you already Craig?? Your lack of understanding about the this company never ceases to amaze me. There are over 1,000 employees working at the China manufacturing facility. They are paid a very small fraction of the salary of what US employees are paid. This is typical for China manufacturing companies and a way of life for China. In fact they even have a dorm facility where the workers live. So, they have a high head count over there but the total compensation is very low compared to US standards. The US facilities have lean staffing. Ciena rode the wave of Long Haul deployment from its early stages until now. Osicom is in Short Haul, who's wave is just beginning. >>The market has already arrived at the conclusion that Osicom is NOT believable, otherwise it would be priced accordingly.<< This scenario is very similar to General Magic (GMGC), a company that I have personally made a killing on this year (and will likely continue to based on technical analysis and assuming the product works as good as I hear it does). General Magic was a high flyer when it IPO'd, trading as high as 32 just a couple years ago. Long story short, their technology was ahead of its time and they made some changes by applying the technology to some new products. A lot of people knew what they up to and the strength of their technology but didn't jump in because of disappointments of the past (they didn't believe they could pull off their plans). Their products have now begun to gain acceptance and the stock has gone from $1 in late December to as high as $15 7/16 recently. All that it took to get them going was a strategic alliance by a big backer, in this case Microsoft... then the others followed. Moral of the story is that the street isn't always right, particularly in small caps that don't have coverage. When disappointments occur time after time, most people won't touch it until the company can "show me the money" or unless they are confident in the products the company offers. This can set up golden opportunities for those who do their research. Personally I believe this is one of those situations/opportunities, and obviously you do not. It's a matter of opinion and I can respect that. I've done my research and the depth of your research as it relates to this company just doesn't compare, which is obvious when you ask such questions about the head count, once again demonstrating that you don't fully understand the inter-workings of this company and its operations. I'm not saying that this story will turn out like General Magic or there is no risk here. What I am saying is that these guys have the products that are in demand, a couple bigtime backers and can deliver right now, which is far more than what can be said for most of their competition. Judging from the comments I received from people checking out their GigaMux and or co-marketing it (NEC), it is my opinion that GigaMux has a very high likelihood of being a success in the Short Haul market.