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: George Dawson who wrote (26810)	5/9/2000 3:15:00 PM
From: trendmastr	Read Replies (3) \| Respond to of 29386

I just listened to the Kumar/QLGC/ ANCR cc. 2 quick observations: 1) Kumar LOVES the deal 2) HK Desai is a very confident, intelligent businessman who loves to compete and HATES to lose. He has a "take no prisoners" mentality. His best line: "Brocade has gotten away with a lot of stuff going against a small company with a Midwestern culture. We are not so nice." tm more later

To: George Dawson who wrote (26810)	5/10/2000 11:25:00 AM
From: George Dawson	Read Replies (2) \| Respond to of 29386

Today's St. Paul Pioneer Press Article on QLogic acquisition of Ancor: pioneerplanet.com Basically a discussion of how the deal could fail and comments from QLogic's CFO on the fact shareholders do not have the information they have at this time to make an informed decision. I disagree with him. I have all the information I need. After considering converting Ancor shares to QLogic shares to protect against this possibility - I realized that was only a slightly more favorable strategy. If the deal did fail, you would see a bump in QLogic's price, but what would happen long term? You would see margins and possibly market share erode and more importantly you would see the entire FC market diminished. Contrary to Brocade's public opinion, they currently are not meeting FC demand and there is more and more hype about GE competition for FC in the SAN. It apparently takes engineers and a lot more engineers than Ancor has to deliver end to end SAN solutions. The learning curve for OEMs has been mentioned as a deterrent to the FC SAN ramp in the past and this probably rules out using in house experts for this purpose. I see the QLogic/Ancor deal as being vital to the entire FC market and not just the two companies involved. This is far more important than any short term price fluctuation. Obviously the perspective of a long term investor rather than a trader. George D.