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Technology Stocks : The New QLogic (ANCR)

QLGC 16.07

0.0%

Aug 24 5:00 PM EST

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To: Eric Somers who wrote (26034)	2/8/2000 7:09:00 AM
From: Bob Frasca	Read Replies (3) of 29386

Eric: I have to disagree with you on this point. I don't think the warrants have hurt the share price at all. Anyone who has done their DD, and that includes institutions, understands that the GAAP earnings presentation is a bookkeeping requirement that, in reality, does not accurately reflect the real earnings. The fact is, that supposed "discount" is in the bank earning interest. The real "discount" is the dilution of approximately four percent which is offset, slightly, by the cash generated by selling the shares when the warrants are exercised. Any tax benefit is just extra gravy. Maybe they were crazy to "give away the company" but perhaps they were crazy like a fox. In my opinion, this isn't even an issue except as fodder for the shorts to scare away the uninformed retail investor. It certainly doesn't bother me and institutional ownership has increased dramatically. I think the only thing that is hurting the stock price is that the ramp-up is taking longer than expected. Bob

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