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

To: George Dawson who wrote (24158)	9/21/1999 8:51:00 AM
From: jad	Read Replies (1) \| Respond to of 29386

Worry reducer No. 4: (from MSN)A decent time span -- more than 180 days -- since the IPO. A company that can claim any connection with fibre channel is hot, and I think rightly so since the technology promises to speed up the movement of data in and out of computers and servers. QLogic (QLGC), which makes chips and boards that use fibre channel to connect servers and storage devices, has been hot (up 183%) this year. Brocade Communications (BRCD), a company that makes switches for directing the traffic on fibre channel networks, has been even hotter, up 184% in just the last month. Which of these is the riskier buy going forward? (The two companies don't compete in this market so an investor could buy both.) Investors in QLogic certainly face the risk that the market for fibre channel might not grow as fast as everyone hopes, for example -- not exactly a negligible worry for a stock that trades at a P/E ratio of 107. But investors in Brocade face that market risk as well as a financial risk. Brocade went public May 25, selling a miniscule 3.25 million shares. At least some of the stock's amazing rise is attributable to the small supply of shares on the market. That supply is set to jump significantly when the lockup period expires and early round investors, founders and employees can sell up to 10.9 million shares. According to the company's original prospectus, the lockup was set to expire Nov. 25. Of course, not everyone will sell shares on that date, but the increased supply -- whatever it turns out to be -- is important when we're talking about a stock with a market capitalization of almost $6 billion and just $62 million in estimated sales for 1999. By comparison, QLogic has a market cap of $3.4 billion, estimated 1999 sales of $192 million, and 38 million shares outstanding.

To: George Dawson who wrote (24158)	9/21/1999 2:20:00 PM
From: J Fieb	Respond to of 29386

Remember that INTC/ANCR demo....sure hope they worked really hard on it....... Grove Says Clicks, Bricks Are The Future (09/21/99, 12:19 p.m. ET) By Guy Middleton, TechWeb Future business will be based on "clicks and bricks" as Internet use drives down cost in traditional businesses, Intel chairman Andy Grove said on Tuesday. "In some years time, there will be no such thing as Internet business -- because all businesses will be using the Internet in their operations," said Grove, addressing the Confederation of British Industry in London. He signaled Intel's move into corporate data services as he revealed plans to open a series of Internet data services in the United States. The centers are expected to offer a range of services from Web hosting to application service provision. The first of the Internet service centers is under construction in Santa Clara, Calif., and will open this year. Grove said Intel had investments in over 250 e-commerce ventures, with external investment of $4 billion dollars over the past year, a figure that outstripped internal investment for the first time in the chip giant's history. Grove said he hoped the investments would fuel the Internet economy and in turn the demand for Intel's services. He also said that although mobile Internet use was poised to grow significantly, the PC would remain the dominant access device for Internet use. "Mobile will be an adjunct to the basic use of e-commerce," Grove said. "I don't think you are going to be conducting the bulk of your e-commerce through your cell phone or similar device." He said he is very optimistic about the growth of digital telephones. Intel is the largest supplier of flash memory for digital phones. Grove said that whether it's having a dominant position in flash memory or microprocessors, Intel has always competed with rivals within the law. "I don't consider it as part of my obligations to my shareholders to foster competition," he said. During his talk, Grove offered a glimpse of the company's 64-bit strategy, but said that production volumes of Intel's first IA-64 architecture would not be available mid-2000. The demands of e-commerce and new services mean that by 2005, the world's processing requirements would grow twenty-fold, he said. Another driver for processor technology was voice-recognition, said Grove, although he said the 95 percent to 98 percent accuracy offered by current voice-recognition systems was too frustrating for him to use.