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

To: iceburg who wrote (27012)	5/17/2000 1:13:00 AM
From: Kerry Lee	Read Replies (1) \| Respond to of 29386

<<I am quite certain we will get our long awaited blows in now. I figure we can get 1/2 the switch market in a couple quarters. On top of that QLGC already has sales and earnings exceeding BRCD. All the while BRCD is enjoying a market cap over twice QLGC>> Steve, IMO the BRCD market cap versus QLGC is refective of 3 factors: 1. BRCD is a PURE Fibre Channel play ( which might come back to haunt them in the long run if you believe what Gilder/Merrill Lynch has been spewing )whereas QLGC derives 2/3 of its business from SCSI adapters. 2. BRCD has a ( current ) dominant market share of 90% in the switch space ( although this will surely change when Sun starts to ramp..Wall St does not understand yet that Ancor switches will be imbedded in the disk arrays as opposed to "just another reseller agreement" ). I don't believe Q has a 90% share of the host bus adapter space. 3. QLGC sequential growth rate has been 9-10% in recent quarters. The most recent Q qtr was a 70-75% topline growth versus YA. However, 1 analyst has this upcoming quarter ( Q1 2001 )estimated at $66 million revenues versus $43.2 million YA. This is a 53% year over year growth rate whereas BRCD continues to show/forecast triple digit growth rates. BRCD has shown $20 million sequential growth in the past 2 quarters..I would not be surprised if BRCD generates a $75-85 million quarter in revs this next quarter. There's alot more VAR/Integrator warehouses left to fill when you think about the worldwide fibre channel (stuffing ) market opportunity

To: iceburg who wrote (27012)	5/17/2000 1:29:00 AM
From: Joe Wagner	Read Replies (1) \| Respond to of 29386

On24 Interview with Greg Reyes biz.yahoo.com After watching this it makes you want to take a shower. He comes across as a combination of a "shady" Circuit City Salesman, Used Car Dealer & New Car Dealer (the type that corners you in the back room and won't let you leave until you buy); or, maybe a guy that runs a boiler room who hit the big time. Just the kind of person you can trust to give it to you straight. I can see why Ashok Kumar called him a liar after his comments on Ancor. I hope Ancor/Qlogic brings Brocade down like a House of Cards. The slime factor here is unbelievable. Joe

To: iceburg who wrote (27012)	5/17/2000 1:49:00 AM
From: Kerry Lee	Respond to of 29386

Steve, I forgot to mention that the Wall St negative perception of ANCR and negative PR ( eg the negative articles that Q will lose business as a result of their falling out with BRCD )also impacted QLGC stock price. HK Desai did a great job addressing this FUD in the most recent conference call but it seems that Q has now attracted the Herb/Rocker crowd at least until the deal closes. It also appears to me that the QLGC investor base is a different investor base altogether. QLGC had become a great "earnings momentum/consistently beat analyst estimates/stock split" stock that met the stringent criteria of certain types of fund managers/hedge funds. Those types of investors bailed out immediately when they felt that earnings growth/momentum would be hurt/diluted by the acquisition. Note that EMC stock was also initially impacted by perception that its acquisition of lower margin / lower growth Data General would distract EMC from their focus while trying to integrate a new company. EMC stock recovered from the shock of buying Data General IMO. The Street says the jury's out on QLGC/ANCR until they start to prove their claim that 1+1 = 5.

To: iceburg who wrote (27012)	5/17/2000 9:05:00 AM
From: Mark J. Hardie	Respond to of 29386

"...Whatever. Herbie and his little faggot-like snitches are being set up for a fall and I am going to enjoy their next demise (remember November? ;-)..." Although I'm generally not a vindictive sort of guy, I'm a firm believer of the concept of 'what goes around, comes around'. Therefore, I'm fairly certain that one of these days Greg Reyes/Brocade, Herbie, and all of Herbie's 'pals' will get exactly what they deserve. It will be worth it for me to hang on to my long-held ANCR shares for a couple more years just to see this happen. Mark