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

To: Greg Jung who wrote (23022)	6/26/1999 12:08:00 AM
From: Lhn5	Read Replies (1) \| Respond to of 29386

fascinating observation from Yahoo: WWG, On your advice I was looking at Monday's intraday chart. That was the day that ANCR gained 5 1/8 points, on no news. To recap the day, ANCR opens at about 20, then meanders in a lazy uptrend, until she hits 20 3/4. Once she hits that price, she goes ballistic, gapping up to 22+. I see huge volume (550K) in about ten minutes. For the remainder of the day, its all institutions, buying big at the ask. Up 5 1/8, no news. What's going on? 20.75/share x 24.1M shares = 500M Market Cap. Portfolio managers, restricted by their Prospectus to investing in companies with market caps of at least 500M, jumped all over ANCR the very minute that she showed up on their radar screens. A dozen or so PMs were tracking ANCR and pushed their BUY buttons the instant ANCR made 20 3/4. IMO, the HUGE volume spike at exactly the 500M market cap price is beyond coincidence. This is extremely bullish. It says that the big buyers are waiting. As ANCR's market cap increases, more of them will be able to add ANCR to their portfolios, and so on. IMO, the next big market cap thresholds are 750M and 1B. If shares outstanding remain at 24.1M, then the "elephant in the bathtub" effect should be seen again at prices of 31 1/8 and 41 1/2. Bottom line: Add in some action from the Russell, and this stock is gonna fly.

To: Greg Jung who wrote (23022)	6/26/1999 12:11:00 AM
From: iceburg	Read Replies (1) \| Respond to of 29386

Greg, Ice, how much FC has Sun sold to date? I am absolutely in no way privvy to Sun's sales numbers. I can share an excerpt from Vixel's filing however that indicates some very early Sun FC sales (1998). "Sun represents their biggest customer at $21.5 million in 1998 " That implies that is the early stages of FC, Sun was already doing ~5M/quarter in hub buisness. Bear in mind that FC is just beginning to ramp up. This number should go up significantly. Also, Sun's Quid Pro Quo investment in Ancor implies that they plan on doing at least 100M of buisness over the next 3 years. Rumors I have heard imply this is conservative. These "smallest and latest" players in the game also own the most complex technology in the FC industry and as the costs hone in on the less robust hubs, the hubs become less and less desireable. Look at any competing network technology and you will find the same pattern. I.e. hubs dominating early and then waneing as switch and hub costs converge. Bear in mind that SUNW's MC is 50 Billion. Similar to EMC's MC of 55B. H.P. > 90B. By way of comparison, SGI's MC is 3 Billion. IBM's MC is 225 Billion but they are WAY more diversified than Sun. IBM is getting it's butt handed to it in storage and will continue to do so so long as it continues to make poor decisions in that arena. They win most of their battles but in storage they are in a state of disarray IMO. Steve