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

To: Patrick Sharkey who wrote (13819)	1/23/1998 1:00:00 AM
From: Alan Aronoff	Read Replies (2) \| Respond to of 29386

<<Alan, public companies do not have any right to tip analysts with nonpublic material information>> It's not a matter of right or wrong. One way or another inside information is disseminated. I've been to a few breakout sessions at analyst conferences and I've sat at a couple of management/analyst meetings and while nothing concrete would be stated, there was usually a good amount that could be read "between the lines" and "through body language." I recall seeing Robert Castle, the CEO of VideoServer, surrounded and hounded by five analysts out in the hallway of a Robertson Stevens technology conference. It was like watching kids asking their parents if they could open their Christmas presents early. "Are you gonna hit the numbers?" "Well let's say that I'm quite comfortable with the numbers." (half smile) "So you are gonna hit the numbers!" "Well let's say that I'm quite comfortable with the numbers." (half smile) Not surprisingly VSVR did wind up exceeding the numbers for the quarter. Interestingly, it did not rally on the bullish report even though the stock had been in a sharp downtrend. It jumped a few points on the open only to be met with selling pressure bringing it back to where it had been before the announcement. I was quite perplexed by the activity. And then, two or three days later, PictureTel announces it is acquiring a VSVR competitor causing VSVR to really tank. More stinky fish. But the kind of info I really consider "inside" is flowing in more subtle ways. From anyone inside the company conversing with their hairdresser to those directly connected to the company... suppliers, customers, accountants, public relations, investment bankers. As an example, I happen to know someone in the accounts payable department at a computer company that has done business with Ancor in the past. Someone, not as upstanding a citizen as myself <g>, could use this source to determine if this computer company was writing checks to Ancor and for how much. I also know someone who works at a PR firm who handles press releases for several technology companies. He works with the releases before they are put on the wire. I also know an accountant at one of the big six accounting firms whose clients include many public companies. The list goes on. I have not asked these people to share nonpublic information with me, but I'm pretty sure some would be willing (for the right price). With regard to Ancor. If I had learned at the end of the quarter that ANCR had no important news for Interop, had no new developments regarding OEMs, and had a minimal back log for q4, I would've been selling too. I think that info was probably pretty accessible at the time to those with good contacts. Since I do not have good contacts at Ancor I have decided to rely on my fresh fish sensor and hope it is working properly <g>.