Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Nine_USA who wrote (25123)	12/8/1999 7:53:00 AM
From: Pigboy	Respond to of 29386

Thanks for the great reporting ED and Alan. Was a nice day. Oh, wait, that's right. After every nice day in Ancor stock, there JUST HAPPENS to be an article by that Brocade Intern Herby Greenberg. As you all know, Herb LOVES Ancor! Oh my gosh, he is bringing up the Sun deal again...LOL! If anyone wants better entertainment than Herb's false reporting articles (Bob Frasca explains some two posts ahead here on SI), then visit how well Ancor has done since he started losing money for his hedge fund 'mob' buddies...whom I hope covered. ;-) goancr.com Oh, sorry, the article. Yeah, from what I gather from hearing about Brocade speeches and reading Herb's 'well researched' articles ;-), it's simply "Not Smart" according to people like Brocade and Herb to do deals with SUN and Intel. I mean, SUN and Intel are such nobodies in the Internet Revolution. ;-)) Does herb know what 'future' revenues mean? LOL! Wouldn't the better article have been entitled, "How I run Brocade and am such a moron for turning down deals at the two of the three biggest computing companies in the world?" LOL! <<<<<<<<<<<<<<<<<<<<<< Commentary : Herb on TheStreet More on Ancor and Checking Back on MedImmune By Herb Greenberg Senior Columnist 12/8/99 6:30 AM ET Wednesday's Wince All in a day's hype, er, work: A $14.8 million investment by Intel (INTC:Nasdaq) yesterday helped Ancor's (ANCR:Nasdaq) market cap grow by about $650 million in this wacky, fundamentals-don't-mean-anything kinda market. Nothing changed at the company. Nothing! Nothing but the receipt of an investment from Intel regarding a so-called InfiniBand product that, if developed, is two years out. Yet Ancor's stock zoomed on the news, and as you might guess, the Hostile React-o-Meter was spinning outta control in the wake of yesterday's Ancor item. (Actually, it was also spinning because of the MedImmune (MEDI:Nasdaq) item, but that's another story.) Oh, and by the way, SunTrust Equitable analyst Mark Kelleher, an Ancor bull, lowered his rating on the company to attractive long term from strong buy for three sensible reasons. The first was the most obvious: valuation. "While we continue to believe the company's prospects are strong, driven by the growth of the [fiber channel] market," he wrote in a report to clients, "we believe most of the good news is now priced into Ancor's stock, and the risks ... now outweigh the possibility of continued strong stock price appreciation." The second was also obvious: The Intel investment does not call for Intel to take any product or generate any revenue. His final point -- something that has been pointed out here (from the dose-of-reality department): Kelleher noted that the higher Ancor's stock price goes, the less Ancor makes on its much-heralded order from Sun Microsystems (SUNW:Nasdaq). Sun, you'll recall, has warrants in Ancor stock that translate into a discount for Sun as Ancor's stock appreciates. The higher the stock, the steeper the discount. His bottom line: When Ancor's stock reaches 74 1/2, the Sun deal actually generates negative revenue under generally accepted accounting practices. Ancor closed yesterday at 85 7/8. >>>>>>>>>>>>>>>>>>> all imho, pigboy

To: Nine_USA who wrote (25123)	12/8/1999 7:58:00 AM
From: Bob Frasca	Read Replies (1) \| Respond to of 29386

Herb: I realize that many on this thread are not interested in mixing it up with Herb Greenberg but I posted what I wrote on his board yesterday so I think I should also post his response. "Frasca, never said Intel investment was a bad thing... but I still don't know how a $14 mil investment for a product that, if it comes, will come in two years, is worth $1 bil in market cap. That's further evidence of this loony stage of the stock market. What I did say is that that $14 mil investment is out of a venture capital pool of $4.8 billion. It's one of Intel's many investments. And it's not exclusive. But, hey, in this market things like that DONT matter. And as for the rest of your comments, there's nothing I would change about what I've written regarding Ancor. hg" In his article today, he again attacked the warrants so I responded again with the following: I'll keep it simple for you Greenberg. Ancor gets $100 million plus approximately $11 million for the 1.5 million shares. Here's the scorecard. Ancor = $111,000,000 Sun = 1.5 million shares plus $100 million in product. Let me say that again. Ancor puts $111,000,000 in the bank. That is NOT "negative revenue". Why do you find this so hard to understand? This is a non-cash item that will cost the shareholders roughly a 5% dilution and that is all. We haven't even begun to discuss subsequent business. Owning a 5% stake in the company might be an excellent motivator for contributing to the bottom line. I'll grant you that the Intel business, at least the InfiniBand stuff, is two years away but, as a professional, I'm sure you realize that stocks ALWAYS trade based on future expectations. I'm thrilled to death to see my company making an investment in the future. Why aren't you questioning Brocade for passing on, what amounts to, free R&D money? Because they don't think there will be a market? Please. R&D ALWAYS pays off. Even if it isn't in the way that was originally envisioned. I won't even comment on passing on the opportunity to partner with Intel. That idiocy speaks for itself. There is a popular quote that we stock message board afficionados like to quote when discussing Ancor. "It's the future, stupid!" We find your myopic viewpoint as well as your shameless promotion of Brocade amusing. Keep it up. The stock has gone from the 20's to the 80's since you started attacking it. How galling that must be. Particularly for those "acquaintances" who are short this stock.

To: Nine_USA who wrote (25123)	12/8/1999 10:32:00 AM
From: The Phoenix	Read Replies (2) \| Respond to of 29386

Herb, I saw your post on the JXM thread. Two things. First the JXM thread is an off-topic thread amongst friends to which you are welcome. However it's not a good place to take shots at people. What were you doing ... searching SI for anyone talking about ANCR so you could slam them??? Just wondering since you seemed to come out of nowhere. Second, perhaps a better response would have been to share your insight rather than just saying "you should short". I grow weary of such childishness. Anyway, in the interest of being constructive and since you clearly understand this technology please share with me what it is about Instiband that gives it the inside edge on DPT or optical NIC's. I'd be most appreciative. I admit I haven't had the time to complete the dd here as I've been swimming in dd with infrastructure companies....but if I've missed something please tell me what it is I'm missing. I'd appreciate it. OG