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

To: Fang Li who wrote (17932)	9/3/1998 8:39:00 AM
From: Kelly Igou	Read Replies (1) \| Respond to of 29386

Fang Li - Unfortunately, any potential buyers are probably investing in much less risky investments than ANCR - such as LU and CSCO, MSFT, etc. Until the valuations on those stocks reach a point where the short-term risk seems greater than the reward, no new money will come into ANCR, where short-term risk is higher than reward, but perhaps long-term rewards are higher than risk. Assuming no significant news from ANCR, of course. Bottom line is that investors on the sidelines can pretty safely pick up some solid bargains and show a reasonable gain elsewhere in the next 3 months. It's all about choices, and right at the moment, there are more attractive short-term choices than ANCR. So, I think the selling is due to investors reducing their risk exposure by shifting into less risky issues. I don't believe this is any sort of capitulation. Of course, part of the problem, as discussed here, is probably due to the Reg D folks shorting against the box...but how much of the problem, I don't know.