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

To: Nine_USA who wrote (11971)	10/30/1997 7:25:00 AM
From: Gyan Brard	Read Replies (2) \| Respond to of 29386

The numbers do not look good at all to me. 2.8 million in revenues in the first month of the quarter announced as a nice teaser and a trickle of sales through the rest of the quarter. Not enough cash to continue operations for much more than two more quarters. Gross margins unbelievably bad (unless those charges are reflected in the cost of sales numbers). I would definitely be prepared to head back to <$6 at this point. Hey at least they aren't trying to pump up the numbers too much in the accompanying text. Still long and hurting bad. Gyan

To: Nine_USA who wrote (11971)	10/30/1997 8:32:00 AM
From: Gator	Respond to of 29386

Sold Ancor and bought Questron (QUST/QUSTP) a few weeks ago. Can't tell you how unbelievably good it feels to own a company with earnings and a positive future. Hate to be down on Ancor because I owned it for so long, but this stock is not your friend. We have been strung along for I don't know how long waiting for improved earnings, and it's just not happening. This quarter's revenues were inflated because of an order that got pushed forward from last quarter. In fact, next quarter looks to be worse (at least revenue-wise) than this quarter. That means at least 6 more months of waiting for a better quarter. Everyone, it's time to take your tax loss and move on to something with a future. My recommendation again is Questron (which some of you jumped on), which just reported 3rd quarter revenues UP 160% to $6.6 million, Net Income UP 331% to $633,000, EPS (POSITIVE EARNINGS!) up 80% to $0.18. Earnings reported in the WSJ today. Common stock (QUST) is selling at $8 13/16 with trailing 12 months earnings of $0.55/share, giving it a current PE of 16. Earnings for year are projected (by the CEO) to be $.69/share, next year $1.08/share. The play here again is the little followed preferred stock: QUSTP, which is convertible to 1.4375 shares of common on March 1999 and pays a $0.11 dividend. If the common is at 8 13/16, one would think that the preferred would be selling for $12 5/8 (8 13/16 x 1.4375), but it is currently discounted to $9 5/8. It is such a deal that the CEO bought 10,000 shares himself a month ago, and the three top executives at Ladenburg Thalmann bought up 13% of it (over 100,000 shares) for their own little partnership. CEO Dominic Polimeni expects analyst coverage to occur shortly from at least two brokerages (one most likely being Ladenburg). Rumor on the street has it that Fidelity may be buying in to it as well (not sure if they're looking at the common or the preferred). This is a great way to recoop some of your losses in Ancor. Don't let your ego get in your way. Go ahead and take your tax loss and move on. It's really very liberating. If and when Ancor starts making money, they will be a good company for a long time (I think a few people made money on Intel well after they started posting positive earnings). There will be plenty of opportunity after Ancor posts their first positive earnings to get in and make a profit. One last wild card recommendation (which I won't go into detail here because I've taken enough of your time) is Apollo International (AIOD/AIODW). Big things may happen soon. Best of luck to all. Hope you don't take a beating today. Gator