John,
Venture capital may be driving Brocade, not Brocade. I seriously doubt the skill of the players and the strategy they employ are in any way superior to those of Ancor except possibly for marketing strategy. Regardless of what they may have lurking around the corner, will not likely be sufficient to enable their potential domination of the FC market. Business is war, that's the way the Japanese play, and Ancor is probably learning that.
As to stock prices, I'm never surprised about anything. Typically the December & January period is bullish for small caps like ANCR, but, theory suggests it's also tax selling season. Ancor is fundamentally sound with reports of substantial insider buying and a great prognosis, so a large part of the decline is probably attributable to people trying to pick the bottom as well as those who can no longer make margin calls, and possibly a few who are mad campers and have had enough with ANCR & Fibre Channel altogether. Hopefully, before we see a complete "tank out" the company will do a press release as a reminder the lights are still burning in Minnetonka<g>! On a more positive note, this probably will be the last opportunity to accumulate at bargain basement prices for at least the foreseeable future.
Tom Goodrich |
