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Technology Stocks : The New QLogic (ANCR)
QLGC 16.070.0%Aug 24 5:00 PM EST
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To: KM who wrote (23829)8/20/1999 11:36:00 AM
From: George Dawson  Read Replies (2) of 29386
 
My only comments about Mr. Greenberg's article:

1. His main point about Ancor's future being strongly dependent on the Sun deal I would consider a basic fact. In my opinion this is why the stock appreciation has stalled (along with low expectations for Q3).

2. His points about Sun backing out of a deal last spring "and causing the stock price to fall to $1." is of course inaccurate. Short selling of the convertible shares is what caused the stock to drop to $1.00.

3. I do not believe that Sun was "co-developing" the switch (MKII) that Ancor currently sells as a SAN switch. In fact, Sun sold a small number of Ancor's older LAN switches - or at least had them listed in their on line catalogues. There is a 1995 press release somewhere, describing Ancor's switch working with Sun storage.

4. Considering the terms of the deal. I have not had that much difficulty getting a hold of officials from Ancor for comment, I can't speak for Sun. The deal with warrants and the dilution effects are (or should be) well known to Ancor shareholders. The dilution from these warrants is mild compared to the effects of the convertible shares. The SEC filings contain notification of potential dilution that is greater than the effect of the Sun deal.

5. I have been posting for years now, that Ancor is a speculative investment. If you are long Ancor, you are essentially betting that Ancor will be qualified with Sun and start doing big business. Maybe there is as much value in being a skeptical long as a short seller? Maybe Mr. Greenberg should have talked to me or one of the other skeptical longs on the thread as well as the "short sellers". After all what's the harder task - picking a winning high risk stock or short selling high risk stocks?

Just another "Ancor investor with half a memory" - but that half a memory is apparently better than some of the sources used for this article.

George D.



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