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

To: Roger Arquilla who wrote (15998)	4/29/1998 9:11:00 PM
From: Craig Stevenson	Respond to of 29386

Roger, <<I may be further confused on what the difference is between doubling the number of shares and offering a stock split.>> The stock split is MUCH better. However, it is also less likely, at least at this point. <g> I will probably also vote yes. IF (BIG IF) Ancor gets a couple of BIG OEM deals, they may need additional financing to ramp production quickly. I don't want to hamstring Ken & Company, if they have a legitimate need. Craig

To: Roger Arquilla who wrote (15998)	4/29/1998 11:19:00 PM
From: Alan Bershtein	Respond to of 29386

Mr. Speroni is correct. Simply authorizing 20 million additional shares would not effect EPS calculations. EPS would be impacted only if the shares were issued and outstanding. For instance ANCR currently has 20 million shares authorized but, as of April 3, only 11.9 million shares were outstanding. It is the outstanding shares that are used to calculate the weighted average shares outstanding which are used to calculate EPS. I'm sure there is a less confusing way to say that. Also, you are correct that it is in fact an illusion with no real value. Being an ANCR long has been quite frustrating (allow me to vent). When I initially got in in Spring 96 it was projected ANCR would be profitable by 4Q96. That got pushed back because of delays resulting from complications with SQNT. Profitability was further pushed back when the SQNT deal collapsed. Fall 1997 came and I remember thinking after listening to the CC that ANCR would be profitable in the 3Q98. Now I don't expect profitability until some time in 1999. Kinnard has 1999 showing a .09 loss per share, but that doesn't mean we can sneak in a profitable quarter or two towards the end of next year. It seems prosperity in Minnetonka is always just around the next corner. So why do I hold? Why have I steadily increased my position? I guess I understand that planting seeds like Ancor in one's portfolio requires patience. ANCR is in a complex business. (I don't expect Mr. Buffet to begin acquiring shares anytime soon) I keep reminding myself that these are seeds, not magic beans! Patience patience patience. The insider buying and the new senior hires have helped me to be patient. Ken Hendrickson's strike price on his options are $9.875. Snyder's are $7.75. IBM still owns 790K shares but has yet to exercise its right to nominate a director. Hopefully we will see that one day soon. There are plenty of reasons to sell and plenty of reasons to hold. I will afford ANCR another 4-8 quarters before tossing in the towel. Hopefully ANCR will extend to me the same courtesy. Sorry for the long gust of wind. Thanks for listening.