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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: GuinnessGuy who wrote (67466)	9/10/1999 10:41:00 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Craig, I think the warrant deal is great for Ancor. Some of the points the author and the analysts raise are downright silly. Such as, why do they have to give away warrants to sell switches? Because it is a competitive business. Duh! And where else is $100 million in revenues going to be handed to a co. with less than $14 mm. a year going in? Yes, the warrants dilute the revenues. But they don't really cost the co. anything. The stock is sitting in a vault. It costs dilution, but the time to worry about that is after they start making a profit, not before. True, I thought all of this was a better idea when ANCR was selling at $4 and change, but it is the biggest deal in their corporate history and pretty sweet for all concerned. What they should have asked is what happens if Sun dumps the stock?