Pigboy,
Concerning any insider buying. Although I agree that there are actually some dis-incentives to buy on the open market, especially for those with extensive options packages, I still got the impression from the conference call that something was going to happen along those lines. I'm surprised that we haven't heard anything yet, but that could be due to reporting requirements. (Maybe they only have to file once a month, for example.) IF the insiders actually support the company with their own money on the open market, I think it will bring in some new investors, and some of us long timers will add to our positions more aggressively. I'm not holding my breath waiting for this to happen, but I'd sure like to see it. My confidence level for the long term would certainly increase.
A few days ago, I looked at a weekly chart of ANCR. I drew a line from the current closing price, all the way back, and was surprised at what I saw. The stock price of ANCR has returned to its value prior to the big runup last year.
My first purchase of ANCR was in May of 1995 at 5 1/8. My next three purchases were in December of 1995 at 6 5/8, January of 1996 at 6 3/8, and February of 1996 at 5 5/8. Lest everyone think I was a genius, I sold all my shares in April of 1996 at 8 5/8, and watched it run to 41.
At any rate, the point is that from May 1995 through February 1996, I thought ANCR was worth at least 6 5/8, and was a buyer at those levels. Now, we have a situation where ANCR is trading lower than that, and a LOT of things have actually improved since then. I am much more confident today that the Fibre Channel market is real, and that Ancor has the technical expertise and the management team to compete. Compare the market and the company today versus a year or so ago, and ANCR actually begins to look a little less speculative. As you said, people should make their own investing decisions, but I tend to agree with you on this point.
As far as anything significant happening until the second half of 1998, I think that is when we will see significant revenue from any storage related contracts hit the bottom line. The OEM contracts that will generate that revenue will be signed long before then, and I think the stock price will reflect that. If there aren't any contracts, then us longs are in a heap of trouble.
Craig |
