I have been buying more the last couple of weeks and may buy more in the near future. Here are my reasons.
1. Ancor has secured 9M in licensing fee, received 1.9M order from Boeing, signed with Netmark..to recover .5 to 1M from the old Hucom. This is equivalent to $20M in revenue. Granted, this is not recuring. But, who is to say Infrange will not work with Ancor for future alignance. I think this is a strong possibility, i.e. FC directors from Infrange and FC switches from Ancor for enterprise computing centers.
2. Mutual fund selling losers to cover winners such as MSFT, yes, Ed, MSFT and Dell, etc. There probably will be more Nasdaq selling and Ancor is one of the best place to park your money. Yes, Ancor may drop to .50 only if the RegD guys would continue to push. What's the likelihood of that. On the other hand, once RegD is finish, I think Ancor can run back to 3-5 quickly. Consider the following scenario,
Buy Ancr at 1.25 for a total cash outlay of 12,500
Stocks drops to .50.. paper loss of 7,500 only if you sell.
Stock goes to 3(market cap of (60 to 70M depending upon dilution), profit if 17,500.
Stock goes to 5(market cap of 100 to 125M depending upon dilution), profit is 37,500.
What are the chances of droping to .50 versus recovery to 3-5 given what you already know of Infrange, Boeing, Netmark and upside of 1+OEM wins??
I think the risk/reward ratio is compelling. All IMHO. |
