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

To: THOMAS GOODRICH who wrote (13177)	12/16/1997 9:31:00 PM
From: Kerry Lee	Read Replies (1) \| Respond to of 29386

I am unaware of any bad news on the horizon as any bad news ( Q4 numbers, timing of OEM revenues ) has been discounted/reflected in the current stock price. To the contrary, the short and long term prospects for Ancor have never looked better based on the growing evidence of explosive FC market growth, the recent response/feedback and test results that Ancor has received from major OEM's as well as mounting evidence of increased penetration in niche LAN vertical markets that the salesforce has been working on. The press releases pertaining to Boeing, Geoquest and Amoco are the tip of the iceberg and do not truly reflect the 1998 and beyond potential revenues from these projects or the related applications in other aeropace/military/oil patch/financial services niche markets. For instance, the recent AWACS Boeing news has a direct positive effect on that "developmental deal". The notion by some on this thread that Amoco was and will be "only one switch" is total misnomer. If people want to believe that, "que sera sera". These LAN markets will perform yeoman's duty in over the next 2 quarters as the Company prepares for the second half Storage OEM ramp-up. The reason why specific names/status reports are not being bandied about by the Company is because to do so would be a reckless violation of NDA's which would jeopardize each situation. Ancor personnel knew they had a design WIN with BULL as early as April but could not officially announce the BULL deal until July due to the fact that the formal contract details still had to be finalized as well as the fact that BULL dragged their feet on the press release due to vacations by key BULL personnel. At a later date, I will detail more specific reasons why I feel confident that Ancor will win their share of future OEM business but at the moment I am not sure that sharing those arguments on this thread would hurt Ancor in the marketplace by giving Brocade a heads-up. Suffice it to say that when I state that the MKII works as advertised , is technologically superior to other FC switches and has the right combination of features ( that are important to OEM's) and low cost to be successful in the Storage OEM market, I am basing that statement on more than just what Ancor personnel are saying about MKII. As far as WHY should someone hold or buy ANCR now as opposed to waiting until the second half '98, that is a no brainer. To sell now is to sell into weakness, ie in the midst of tax selling season as well as when others are forced to sell due to margin calls, stop losses, etc...Obviously, there is a segment of ANCR investors who have made significant money on other stocks in 1997 and look at selling ANCR as a financial decision to reduce their overall tax liability come April 1998. Some who bought ANCR on margin may have little choice but to sell to respond to a margin call. The technicals/trading charts on ANCR look terrible ( correct me if I'm wrong) and the shorts/sharks know this. If I was short ANCR, I would look to cover ANCR by Dec 31/97 since the bad news is already out there , tax loss selling season only lasts another 1 1/2 weeks and there are probably 400-600,000 shares still short that will need to be covered ( purchased ) at some point in the future. On the other hand, if one already has a balanced portfolio of cash, bonds, blue chip stocks, etc..ANCR represents excellent risk/reward going forward from today's price and the trading days between now and New Years might be a good time to initiate or increase Long positions.