The New QLogic (ANCR) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : The New QLogic (ANCR)

QLGC 16.07

0.0%

Aug 24 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Greg Hull who wrote (17998)	9/12/1998 12:38:00 AM
From: Eleder2020	Read Replies (2) of 29386

I beleive that it is to the serial converters advantage to keep the price down until they finish converting. They lock in profits whether the price of Ancor is 1 or 2 or 3. The advantage for the price at 1 is to own as much stock as they can when they finish converting and decide to cover and go long. I'm sure their dream scenario would be to cover at 1. So they sell a gazillion shares and then convert the next round and create more selling by shorting a new gazillion shares against the box with what appears to a percentage profit locked in. They don't lose money by covering at 2 or 3 against the box.It is that their risk at 2 or 3 seems to be greater then at 1 when they convert and that their upside potential is diminished.So for them Ancor is more attractive at 1 then at any higher price until they finish converting and finish covering. Just my take on this subject.However, This too will pass. Looks like the Saudi Prince did us a favor by converting at 6 in what seems to be about 20 years ago. It was much less dilutive. Ed

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next