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

To: George Dawson who wrote (17986)	9/10/1998 6:05:00 PM
From: Craig Stevenson	Read Replies (2) \| Respond to of 29386

George, <<Did you notice that 2 days ago Ancor was one of the top inquiries on your short interest site? It was #17 with 41 hits.>> No, I hadn't noticed that. Interesting... In keeping with our "conspiracy theory", I do have a couple of thoughts. (No evidence, just thoughts. <G>) In my opinion, the majority of the shorting is coming from the Reg D guys. I don't think anyone else would (or could) short the stock after it dropped below the 2-3 dollar range. My reasoning is that nobody else would have enough shares to force the price down enough to be sure of covering. Even after the Boeing announcement, there was plenty of selling pressure to force the price back down. I also think this is simply one more way for the big money guys to maximize their return. Clearly, Ancor thought that they would have an OEM deal signed, sealed, and delivered by the time conversions started, when the original Reg D deal was done. When that didn't happen, the Reg D guys must have decided to try to grab as many shares as they could, as cheaply as they could. So, they shorted the stock, drove the price down, and have now converted. I don't think there is anything illegal or unethical about that, but I wish I would have figured it out a long time ago. Once again, I don't understand this well enough to be sure I'm right, but it makes sense to me. It also makes sense that they actually believe in the company's prospects going forward, or they certainly wouldn't want to own the maximum number of shares. Craig