Some reasons ANCR has not rallied on the Boeing news? Well, I've got a few thoughts.
First off, this is a LAN deal, and ANCR has announced that they're getting out of the LAN business. So, this would not and should not be viewed as a deal that is merely step one in an ongoing revenue stream, and we all know that ongoing revenue is what Ancor needs. (NOTE: it's possible, per Kerry, that more money COULD come from this, but I would doubt that anyone would buy on that perception.)
This is not an OEM. We all say that Ancor's price will only go up when they sign an OEM. So, if this is not one, why expect a rise?
$1.9 million is nice. It does give the company a little breathing room. But not much in the greater scheme of things. Does anyone out there really think that this deal eliminates the need for Ancor to find additional funding? I sure don't. I think the stock price of ANCR could rise on a financing agreement. This is not that agreement.
Look, I'm not a bear, I'm just saying that it's important to keep perspective. It's very, very nice to hear positive news out of the Ancor camp. But don't read into it dreams of a stock price of 12. Until they get that OEM and/or financing, I don't imagine the price will rise too much. And mind you, I sure hope I'm wrong.
the freep |
