Ken,
I have been hesitant to bring this topic up, but I have some additional questions and concerns regarding the Reg D holders, apart from the conversions.
Because of the number of shares that the Reg D guys hold, my biggest concern is what happens to the average ANCR shareholder when they decide to sell? Based on their conversion price, they certainly have some hefty profits on paper. I think there are two possibilities in the VERY short term. One is that they sell some shares before the end of the year and book the profits in 1998. The other possibility is that they sell immediately in 1999, possibly following news of some sort, and book the profits in anticipation of a market downturn later in the year. Because of the fantastic year most people have had in 1998, I think the second scenario is more likely. There could also be some tax loss selling next week, but I don't see that as quite as big a factor, given the rise from $1 to $4. (Granted, there is probably a lot of higher priced stock out there, but there are also signs of life at Ancor again.)
I must confess to being VERY leary about these two possibilities, especially the second one. There certainly isn't anything wrong with the Reg D guys selling and taking some profits, but they control a LOT of shares, and I don't want to get in their way. Opinions, anyone?
Craig |
