Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Roger Arquilla who wrote (17651)	8/11/1998 2:26:00 PM
From: Arthur	Read Replies (5) \| Respond to of 29386

I have not posted here in a long time as I have been off doing some research in an attempt to unravel some of the mysteries floating around regarding ANCR and its management. First, within a few months of Ken H. becoming CEO, the company stopped releasing any news that could be interpreted positively and instead any news that did come out was cast with a decidedly negative spin. In particular comments made during the conference calls seemed calculated to drive the stock price down. Second, in apparent contradiction of the above, Ancor was still able to hire well-regarded personnel for other upper-level management positions. I have noticed that several other posters were as confused as I was as to how a company that seemed to be going downhill quickly could still attract quality people. And thanks to the undercover work of my associate Clarence Beeks, I have discovered CEO Ken's secret. (For those of you of a still tender age, Mr. Beeks gained a certain notoriety doing some "top secret" research for the Duke & Duke commodity brokers in the early 80's, then disappeared for some time after the firm went belly up) Anyway, using his natural charm, Mr Beeks was able to get his hands on the employment contracts for the upper-level Ancor management team. It seems that due to an apparent typo, Ken H. was actually given the equivalent to put options on Ancor stock instead of the more customary call type options, ie Ken stood to profit enormously if the stock price went down. Once I saw this, it all made sense, for example why they had issued a press release saying they did not win the Sun contract. Also, this was the recruiting tool Ken was able to use to attract the other new members of his management team. He carefully structured their contracts so they would also gain handsomely as the share price of Ancor stock was beaten down. Over time of course some of the older employees found out what was going on and demanded their piece of the gravy train. (Especially those like Cal Nelson who had actually gone long on the stock.) In my last conversation with Mr. Beeks, (held in the customary darkened parking garage) he indicated the rumored champagne party was in fact a celebration of the stock hitting 1 1/4 as the company now has a number of new paper millionaires. Art