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

To: Starowl who wrote (22626)	6/13/1999 2:39:00 PM
From: Cymeed	Respond to of 29386

I am wondering what kind of valuation one should assign to ANCR. The Sun contract says one share of ANCR warrant will be vested with $67 revenue from SUN. Assume SUN wants to vest all of the 1.5 million shares, it will be $100 million in revenue. But how many years will this take place? 1 year? 10 Years? 20 years? Does anybody know how many gadgets Sun is selling each year? How many FC is needed for each "gadget" they ship out? What is the price ofg these FC on a unit basis? My wonder is, even ANCR can sell all those $100 million revenue in one year, does it justify a $500 million capitalization (with a share/revenue ratio of 5.0 ) ? Those who are more knowledgable please help me understand this. Thanks.