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

To: Ocean_Joe who wrote (24560)	10/29/1999 1:37:00 AM
From: George Dawson	Read Replies (1) \| Respond to of 29386

Joe, As I have posted many times before, I have no fundamental reason to believe that Ancor or Brocade's switches are superior to one another. In terms of testing, the original CERN test of the Silkworm is still a classic in my book and a good example of what a technical test of a switch should be. It also helps to have the tests done by a world class engineering outfit. I recall rather heated discussions on this thread of the necessity for similar testing of the Ancor switch. If that test was available, we could point to it right now as evidence that the Ancor switch operates as advertised. Barring that we are left with the typical Ford vs. Chevy arguments of the marketplace. In that context you are certainly right - only the sales count and sales (like with Fords and Chevvies) may be a matter of personal preference. The CERN link is: lnxatd01.cern.ch I think there is also a pdf on that site. If we are talking about competitiveness from a market rather than a technical perspective there is the usual pre-requisite. My old speed skating coach told me the story of how he came to town from Chicago and was watching local skaters. Despite the fact he was very fast, he felt compelled to wait for an invitation to race with them. They were all very cordial, but after a while he realized nobody was asking him to race. At that point he realized the basic fact of competition, if you want to race - get out and race. Nobody is going to ask you, or for that matter even be nice to you. When you realize that - you realize all of the polarizing rhetoric is nonsense. George

To: Ocean_Joe who wrote (24560)	10/29/1999 2:07:00 AM
From: George Dawson	Read Replies (1) \| Respond to of 29386

Philosophical waxings on competitiveness aside there are some important reasons why the recent market action takes on importance. The comparison below highlights a few: TSO FLOAT SHORT INST% INSTsh INST# ANCR 25.2M 23.8M 3M 24.5 6.2M 46 BRCD 25.7M 3.3M 900K 13.1 3.3M 83 The lock up on BRCD is over sometime in November or 180 days from the open. Since the actual numbers of shares that change hands on a given trading days are essentially unknown and the price of BRCD remains elevated on low volume it may be reasonable to conclude that the current high valuation is related strictly to the lock up. I think the relatively (compared to Ancor) low institutional holding, small short position, and low float are all evidence for this. I have added to that my observations of the trading patterns of the stock, including the high price fluctuations per shares sold for BRCD and the patterns I observe on I-Watch. One of my basic assumptions has always been that the technology is essentially equivalent until proven otherwise. Since I do not consider that has happened, I ask myself is there a reason why the market cap of BRCD is approaching 10x the market cap of Ancor? I also ask myself if there are other reasons for a "short attack" on ANCR rather than BRCD? I think these are relevant questions. Hopefully we will know the answers soon. Above numbers are from nasdaq.com, quicken.com and YHOO. George