Herb:
I realize that many on this thread are not interested in mixing it up with Herb Greenberg but I posted what I wrote on his board yesterday so I think I should also post his response.
"Frasca, never said Intel investment was a bad thing... but I still don't know how a $14 mil investment for a product that, if it comes, will come in two years, is worth $1 bil in market cap. That's further evidence of this loony stage of the stock market. What I did say is that that $14 mil investment is out of a venture capital pool of $4.8 billion. It's one of Intel's many investments. And it's not exclusive. But, hey, in this market things like that DONT matter. And as for the rest of your comments, there's nothing I would change about what I've written regarding Ancor. hg"
In his article today, he again attacked the warrants so I responded again with the following:
I'll keep it simple for you Greenberg. Ancor gets $100 million plus approximately $11 million for the 1.5 million shares. Here's the scorecard.
Ancor = $111,000,000 Sun = 1.5 million shares plus $100 million in product.
Let me say that again. Ancor puts $111,000,000 in the bank. That is NOT "negative revenue". Why do you find this so hard to understand? This is a non-cash item that will cost the shareholders roughly a 5% dilution and that is all. We haven't even begun to discuss subsequent business. Owning a 5% stake in the company might be an excellent motivator for contributing to the bottom line.
I'll grant you that the Intel business, at least the InfiniBand stuff, is two years away but, as a professional, I'm sure you realize that stocks ALWAYS trade based on future expectations. I'm thrilled to death to see my company making an investment in the future. Why aren't you questioning Brocade for passing on, what amounts to, free R&D money? Because they don't think there will be a market? Please. R&D ALWAYS pays off. Even if it isn't in the way that was originally envisioned. I won't even comment on passing on the opportunity to partner with Intel. That idiocy speaks for itself.
There is a popular quote that we stock message board afficionados like to quote when discussing Ancor. "It's the future, stupid!" We find your myopic viewpoint as well as your shameless promotion of Brocade amusing. Keep it up. The stock has gone from the 20's to the 80's since you started attacking it. How galling that must be. Particularly for those "acquaintances" who are short this stock. |
