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

To: Joe Wagner who wrote (16743)	6/20/1998 5:17:00 PM
From: George Dawson	Read Replies (1) \| Respond to of 29386

"George, the current price squeeze on many small companies like Ancor, due to general market forces could be causing the dramatic drop in price. Looking back at some of your posts from a couple months ago things looked quite up beat. Have things really changed that much for Ancor? If so what has changed? In addition, do you think there is a general slow down coming in the tech sector as we approach year 2000 with money only going towards fixing the year 2000 problem? It seems that at some point things have to start picking up for the storage vendors due to the ever increasing demands for more storage. When is the next cycle expected to begin where the industry is expanding quickly?" Joe, I don't know if anything has changed that much for Ancor. There has always been a high degree of uncertainty about Ancor's competitiveness. Recent factors (large block sales, decreasing OEMs, no news) have seemed to heighten the uncertainty in this area. I have no reason to doubt that the FC learning curve, qualification cycle, and dependence on components from storage manufacturers are big factors. Anti-Ancor rhetoric and backlash from Ancor shareholders are other factors that at least increase the *appearance* of uncertainty. Before anyone gets too indignant - I think backlash is perfectly understandable when you see the potential loss of thousands or tens of thousands of dollars. Backlash however is not necessarily a basis for an informed decision, anymore than listening to the CEO preach to the choir at the shareholders' meeting is. That uncertainty actually cuts both ways. Once you are comfortable with it it doesn't hit you as hard. It is this tolerance for uncertainty that keeps me long in Ancor at this time. At least until there is more hard evidence to tip the scales one way or the other. George D.