<<Kerry, are you out there? What's going on?>>
1. A confluence of events...I'm hearing thru the grapevine that BRCD has 1-3 unannounced wins under their belt as does ANCR. Time will tell.As far as today's action, one must look at the events of the past 1-2 weeks to put today into context:
- accumulation of ANCR by fund (s) as awareness of FC/SANs brought some to dip their toes into ANCR. The recent N+1 and Clariion analyst call were the catalysts for SAN/FC interest. Ancor mgmt has not denied making presentation to a certain famous fund that used to have a controversial fund mgmr running it.
-behind the scenes, rumors of at least 1 major account win which has fuelled big money interest
-IF the Yahoo post about WALL STREET STRATEGIES putting out a BUY on ANCR last week is true, then they probably account for at least 1-2 points of volatility in both directions this week and last week. I had a friend who used to subscribe to this trading service..they put out a fax twice a day to basic subscribers who might be day traders/retail brokers. Institutional clients pay at least $5,000/year for a special "phone call" service. I saw this in action back in 1997..they have the juice to bring in lots of buyers and I've seen them move a stock by 10-30% over 1-2 days..the flipside is that IF their stock pick either does not pan out or it gets toppy from a TA perspective, they get everyone out at once, hence you get a rush to the exits, like we saw today.
- I could see the above scenerio causing retail day traders/speculators to sell ( today ) because the MM's take out their tight stop loss orders and/or they have bought too much ancr on margin( I have always told people to NOT buy ANCR on margin ).
- I suspect many "pros" who trade by TA/stock screens, shorted ANCR yesterday at 12-13 and more shorted today. These shorts can be seen posting over past 2 days on Yahoo ( surprise, surprise ).These shorts believe the tea leaves will send ANCR down further, BUT I would not be surprised to see a major squeeze coming...the recent 2 week stock run-up has been fueled by more than just "SAN sector awareness". The day traders who bought ANCR at 10-12 hoping to ride it to 15-20 in a couple days are the ones who were in a hurry to bail out.
- NASDAQ down 73 points..recent Tech Wreck" caused alot of FUD and panic/ margin call selling.
PS - It is my firm belief that Ancor mgmt is waiting for a couple pieces to fall into place before they go to the well like BRCD, EMLX and now ZOOX.Then they will have their own War Chest of cash, an NMS listing and ANALyst coverage beyond Kinnard .Wall St reception to EMLX and BRCD bodes very well for ANCR's ability to raise money. I know of at least 3-4 firms who have made very recent overtures to Ancor to do a follow-on like EMLX.Believe it or not, Ancor mgmt does have a Plan. |
