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

To: janski who wrote (12845)	12/3/1997 2:43:00 AM
From: PAR	Respond to of 29386

it would be nice to see them do some confidence-building BUYING instead of so-called programmed SELLING.

To: janski who wrote (12845)	12/3/1997 4:03:00 AM
From: Kerry Lee	Read Replies (2) \| Respond to of 29386

<<It doesn't matter that Brocade is getting all the press and publicity because the people making the decisions don't care about it and Ancor's product is superior so it will be bought.>> I can't wait to see your sophisticated share-of-voice analysis for your conclusion that Brocade is getting all the press and publicity. I'm sure you are aware that FC press was up 4 fold in the past 6 months which is one indicator that FC is reaching the point of critical mass. Not to mention the significance of IBM returning to FC. I assume when you say "all" of the press and publicity, you mean 100% and that the multiple articles/media hits that Ancor has received in the past 3 months are not factored into your analysis. Did your analysis include the Softbank/Interop press release which featured Ancor or the Comdex Fibre Channel Loop Community Interoperability press release which also feaured Ancor? Did it ever occur to you that as a private company, Brocade can claim or state many things that might get a public company in trouble with the SEC? If Brocade was already a public company, would you expect them to put "in evaluation or being qualified with 15-20 OEM's" in a press release? The ambulence chasers would love to see that <g>. For the record, I have previously posted months ago that I would not be surprised to see Brocade do $20+ million revenues in 1997, nor would it be a great shock to see them win a major OEM account such as SUN. At the same time, while Brocade clearly has the Momentum and Mindshare, they are not a "slam dunk" to become the "Wintel" of Fibre Channel. << In the meantime, the money is running out and more dilution is coming. I wouldn't mind it if it was to ramp up production to satisfy customer's demand. It will again be needed to simply pay these folks salaries while we wait.>> Janski, do you have any idea what Brocade's cash balance was just prior to this round? Do you think if you were an original Brocade shareholder that you would be happy with the terms/dilution of the recent $20+ million round of financing? Do you know what percent of the company was given up in return for the $20 million? Have you ever invested alongside a VC in a later round? ( I invested in a second round of a private company, declined the "opportunity" to remain whole on the third round and I took a huge haircut as a result ) One of the reasons why original/old investors often invest in later mezzanine rounds is because if they don't, they get diluted BIGTIME. I would not be surprised to eventually learn that by the time Brocade goes public, they will have somewhere in the neighborhood of 20-40 million shares outstanding. A $300-500 million market cap is not unreasonable. Lots of risk for retail investors. Great paydays for the VC's, insiders and private investors when their lock-up periods end. As a current shareholder of ANCR, I am obviously not pleased with the stock performance and the snails pace of progress in terms of deals and revenues. However, with the low market cap of under $60 million coupled with what I believe to be tremendous growth prospects for both the FC industry and Ancor, I myself am compelled to hold my position and add at the appropriate buying opportunities as they arise. That is a personal decision/opinion and not a recommendation for others to follow. That's your own business. If you lose money, blame yourself. If you make money, pat yourself on the back. Nobody is forcing/coercing anyone to buy/hold ANCR. Regarding dilution of ANCR, we're probably at 13 million shares counting all the Reg D and another couple rounds in the next 6-12 months probably adds another 2-3 million shares. Big deal. Look at the shares outstanding on other young emerging companies like FORE and XYLN and you'll see shares of 90+ million and 40+ million respectively. Looks like they might have burned alot of cash during their early stages. Shame on them <g>. <<And all the while the board members continue to unload their shares.>> 1. Dale Showers, Terry Anderson and Robert Cornellius are not board members. Dale Showers does not earn a salary from anyone and is now a bonified card carrying member of AARP. He is closer to 70 than he is to 60 years of age. Should he just leave everything to his children or to some charity? The best thing Dale ever did was to come out of retirement for 3 months, remove Steve, promote Cal and hire Ken. My info suggests that employee morale is very high and that the biggest source of griping is that the average employee doesn't have more stock options. That's a positive sign. There have been some underperformers in the Company, most notably in the Sales area and action was taken ( eg. West coast sales director position was recently "upgraded" ). What did your NUKO "research" tell you about employee morale and turnover and did that aid your investment decision on NUKO? 2. I have yet to see any 144 sales from the current board members, ie Ken Hendrickson et al..To the contrary, I would be surprised if we don't see Form 4's before year end ( remember, only trust your mother ). If you go to Insidertrader.com, you will see that on the majority of Form 4 insider purchases there is a lag time between the purchases and the subsequent reporting of them. 3. Do you know how much salary the Insiders/Board members are making and what percent of their salaries or net worth should they be investing in additional ANCR shares over and above their stock options? IF we assume that Ken Hendrickson's salary is only $160,000 per annum, what level of buying/$ commitment would satisfy you? 4. When was the last time Bill Gates or Paul Allen purchased MSFT stock?