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

To: Eleder2020 who wrote (18002)	9/12/1998 12:47:00 AM
From: George Dawson	Respond to of 29386

"Looks like the Saudi Prince did us a favor by converting at 6 in what seems to be about 20 years ago. It was much less dilutive." Ed, Very astute observation. I remember when people were complaining that a Reg S was a bad thing. That it was frowned upon. History (at least to this point) is showing that is not the case here. George D.

To: Eleder2020 who wrote (18002)	9/12/1998 9:32:00 AM
From: KJ. Moy	Read Replies (2) \| Respond to of 29386

Ed, <<<The advantage for the price at 1 is to own as much stock as they can when they finish converting and decide to cover and go long. I'm sure their dream scenario would be to cover at 1. So they sell a gazillion shares and then convert the next round and create more selling by shorting a new gazillion shares against the box with what appears to a percentage profit locked in. They don't lose money by covering at 2 or 3 against the box.>>> My scenario is somewhat more complicated than what you said here. Assuming they have shorted many shares, their price was about $1 ish. What they have made for sure is the 15% discount. If price starts to move up, they can't cover at $1 from the open market. They may be able to use the 'to be converted' shares to cover. The window for that is about 2 weeks and it is assuming the prospect for price appreciation at that time is going to be stagnant. If price continues to move up at the end of the window, it would appear they will be selling low just that they can recycle the shares(i.e. selling and converting at the same time so that they can pocket the price difference at the time plus discount). I am sorry if I confuse anyone. I can make a case that they would just hold everything they have and not convert anymore until Ancor is at a much higher price. That is, if Ancor suddenly look so good such that upward movement prospect is much better than the price difference of 'week 1'(potential conversion price) vs 'week 3'(potential selling price), then holding for them is a better strategy. All IMHO. KJ