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

To: Craig Stevenson who wrote (14492)	2/19/1998 10:54:00 AM
From: Lhn5	Read Replies (1) \| Respond to of 29386

Well I didnt look at scenarios when ANCr is at $6 or 4 or 2, but why would I anyway-). But I think your statement about 10% dilution is reasonable.

To: Craig Stevenson who wrote (14492)	2/19/1998 1:26:00 PM
From: tom weaver	Read Replies (2) \| Respond to of 29386

The convertible is I think structurally like the other reg-d's that have been done in the past. I might be able to shed some light on the subject though. First, as one of the previous posters said, the ceiling is between 9-13 and if the stock runs the investors are not forced into converting at a higher price and they reap the spread, only if they sell, conversion does not mean that they sell. So the dilution is 8mill divided by nine dollars a share = 888,888 and of course plus the stock dividend which was not discussed. The floor is what the concern is....... If the company is in trouble and the stock is at say two and the investors convert 8 million divided by 2 dollars a share = 4 million shares....... Then, the old practice of shorting the stock when it is high, converting at a lower price and covering the short. Nasty practice....... I've seen these preferreds damage a company and a stock permenately, this is the new 90's financing technique. But I think we are safe, at least for the time being cus of the stability of the investors..... good job ancor.