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

To: Greg Hull who wrote (17011)	7/5/1998 5:07:00 PM
From: George Dawson	Read Replies (1) \| Respond to of 29386

Greg, Great post - and sound investment advice from James B. Cloonan. Personally, I would prefer the sound of "speculator" to "naive and greedy chump". Let's just hope school will not be out very soon. George D.

To: Greg Hull who wrote (17011)	7/6/1998 6:45:00 PM
From: Patrick A. Kelly	Read Replies (2) \| Respond to of 29386

Greg, Nice to hear from you again! In the lull, I'll share a conversation I just had with Cal Nelson. Steve Snyder is out of the office for the week, so Cal took time to answer my questions. I explained that my wife and I left the annual meeting with a sense of confidence, a degree of comfort that all was on track at ANCR, and renewed patience that the "second half" would unfold. He was glad to hear that, so I got the impression that such a response was appropriate and was their intended outcome. (As I write this, I realize it is a "no brainer", but I share it to reemphasize that all of what was said at the annual meeting led to the summarizing statement: "ALL IS WELL at ANCOR!"). I expressed how frustrating it is to watch the stock crumble, with large volume, and with no public information to explain the movement. I asked if there might be some information that I had missed. He shared how frustrating it was to them as well! He said that there was no explanation-from their point of view-and that they are as disappointed and surprised as we are that the stock price is so low. He said that because of the non-disclosure agreements, which are part of their ongoing discussions with OEMs, he cannot offer any of the positive news to offset the negative mood and stock price. (Of course, I read that to mean: "I wish I could tell you shareholders what I know about ongoing discussions with OEMs, but I can't!") I asked the question: "If IBM had become a seller of their ANCR holding would ANCR know about it, and would they be allowed to announce it?". He said that that was an interesting question that might be better answered by Steve because of the legal issues. He did say, however, that from his point of view it would be nice if he had such an easy explanation to offer the public as to why there is such selling pressure. (I read this to mean: "I don't know if IBM has sold their position in ANCR, but it would be great to say:'AHA! That's why the stock is down: people are misinterpreting the IBM holding!" He reaffirmed what was said at the annual meeting about the IBM holding: it was simply an investment in the technology and ANCR's piece of that technology so that the TECHNOLOGY would be available to IBM when it matures... and they need it. At the annual meeting, and again today, I got the impression that any notion about a connection between IBM being a shareholder and that being a possible influence on OEM talks is absolute misinterpretation of the importance of IBM's holdings of ANCR stock. I share this because it keeps coming up as an issue. IBM holding shares of ANCR=dead issue!!!! In response to my question about the timing of the whole FC adoption schedule, he agreed with what you folks have been saying all along: the schedule of implementation has fallen behind previous expectations! (This is not to be interpreted as a "Just wait until next year!" type statement). There was a tone of disappointment in his voice when he spoke of the "unfolding" (my word) being pushed back a month or two. As a disclaimer, I want you to know that I have made no attempt to quote Mr. Nelson directly. My intent is to share a summary of our conversation with emphasis on what I heard rather than on what he may have said or intended. I appreciate his taking time to help me with my egg guarding. I explained that it was not our initial intention, but, because of recent price declines and the need to sell other positions in order to establish a "cash only" holding of ANCR, we now have only one large egg in our basket, the sitting upon which can get very uncomfortable!