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

To: trendmastr who wrote (17434)	7/27/1998 1:05:00 AM
From: iceburg	Read Replies (1) \| Respond to of 29386

Trendmaster, You are correct that Roy has had more insight into Ancor's prospects than the rest of us. So why did you quote the following: And in post # 17373 : <<The LAN market for Fibre Channel is minimal at best. mostly because the host bus adaptors that are presently being sold have terrible Packet Per Second Counts (PPS) they are actually all below FDDI speed right now. The main reason is that they are presently optimized for FCP (SCSI) they have average latency numbers in the 25-100 micosecond range which just doesn't cut it for networking.>> and not the following: The hardest thing to believe is that a FC copmany has a market cap below $24 million Just to put things in perspective G2 recently closed a round at above $30 million, Brocade closed one at above $125 million and Gadzoox at aboive $100 million. Makes ANCR a cheap buy. Vixel paid almost $40 million for arcxel (all they had was an FPGA prototype of a switch) they could have bought a lot more technology from ANCR cheaper (at least this week) Trend, we are all bitter, but common sense will prevail once the fury over the quarterly numbers wanes. I was mentally prepared for a 1M quarter and 1M in writeoffs. I was prepared for a market tantrum and I had a GTC order in to buy 2000 shares at 2 5/16. When I saw the numbers I felt sick and called my broker as fast as I could and cancelled my order. I was shocked the stock didn't open near 2. But doing the math, if Ancor is worth 40M, subtracting the $15M the Reg-D guys are owed, the common stock about $2.00. I believe that given the Vixel purchase of a crummy Arxcel prototype for $40M that Ancor is worth $200M. Wild guess and crude math puts them near $10/share in a mutually acceptable sale. The technology is good, I don't care what the doubting Thomases say. Unless you believe no one cares about it, you know they are worth a lot more that their current MC of $40M. I think we will be looking back at this as an opportunity in the not so distant future. I'm sure some disagree, that is why we have a market, right? Steve