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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Greg Hull who wrote (22566)	6/12/1999 3:13:00 AM
From: George Dawson	Read Replies (1) \| Respond to of 29386

Volume and price trends 10 days before OEM deals: Prisa (12/15/98): 325,200 -> 359,800; $3.00 -> 3.25 ForeFront (1/7/99): 293,300 -> 437,800; $4.00 -> $4.75 InRange (1/27/99): 665,000 -> 338,300; $5.93 -> $8.00 JNI (2/5/99): 777,300 -> 294,400; $7.225 -> $7.75 nStor (3/17/99): 359,500 -> 157,900; $5.563 -> $5.75 CONSAN (4/6/99): 102,600 -> 126,900; $5.188 -> $5.563 MicroNet (4/11/99): 126,900 -> 188,100; $5.563 -> 4.813 HDS (4/26/99): 228,100 -> 361,700; $4.938 -> 6.625 Sun Microsystems (6/3/99): 110,940 -> 475,300; $8.938 -> $10.25 Obviously very good trends for Ancor share value and an impressive string of OEMs. The above numbers do not reflect the number of days trading over 1M shares as a predictor of significant deals. In the 10 days prior to the Sun deal the stock traded > 1M shares on 5/10 days with a max of 3M shares on a single day. The only other time that happened was during the 10 day period prior to the Inrange deal when it traded > 1M shares on 3/10 days with a max of 1.7M shares on a single day. The month following the Inrange deal (Feb) also had the highest average daily volume. The average share volume ranges from 195,406 in April to the max in February at 668,685. All facts verifiable on nasdaq.com. George D.

To: Greg Hull who wrote (22566)	6/12/1999 12:24:00 PM
From: George Dawson	Read Replies (1) \| Respond to of 29386

Greg, My reading of the 8-K is that the deal is structured as much as possible to assure that the deal is an investment in th company. The vesting period, no guarantee of registration of the shares and even the designation of not transferrable on the certificates are all fairly explicit. The intent of the deal as an investment rather than for resale or redistribution is stated repeatedly. I don't believe your question about selling common shares can be answered from the document, but that the closest hint may be in the following paragraph: "(b) The Holder understands that the Warrant and the Warrant Shares have not been registered under the Securities Act by reason of their issuance in a transaction exempt from the registration and pros pectus delivery requirements of the Securities Act pursuant to Section 4(2) thereof, and that such Warrant and the Warrant Shares, as the case may be, must be held by the Holder indefinitely, and therefore, that the Holder must bear the economic risk of such investment indefinitely, unless a subsequent disposition thereof is registered under the Securities Act or is exempt from such registration requirements. The Holder further understands that the Warrant Shares have not been qualified under applicable state securities laws by reason of an exemption from such qualification requirements, which exemption depends upon, among other things, the bona fide nature of such Holder's investment intent expressed herein." My read is that it would take registration of shares (or exemption of registration) under the Securities Act. What it takes to do that is a relevant question. I think there may be something to learn from similar deals in the past with other companies. I am aware of Intel purchasing MRVC warrants in the past and will review that document. George