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

To: Louie Liu who wrote (24028)	9/10/1999 9:26:00 AM
From: Patrick Sharkey	Read Replies (1) \| Respond to of 29386

Isn't the flaw in the argument presented apparent from the terms of the deal itself? In the event that this anti-Ancor hype drives the stock price down to the high teens, which it might, those phantom "negative revenues" won't come close to coming into existence, since the spread between the warrant price and the market price of the stock will be 10-12 dollars, thereby eliminating the premise of the argument that earnings won't materialize. Has anyone ever done a spread sheet showing the effect of various stock price points on various levels of purchases by SUN, including purchases exceeding $100 million, on the Ancor p/l, assuming say a 40% gross margin. That type of analysis would go a long way to dispelling the anti-Ancor hype, or to establishing that there might be something to the notion that it is Ancor's worst nightmare to be partnered with SUN -- at least for the short term. By the way, I wonder how the folks at Ancor who planned to sell their Ancor stock in October -- if any -- are feeling about things?