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

To: Technocrat who wrote (18105)	9/18/1998 8:15:00 PM
From: Kerry Lee	Read Replies (3) \| Respond to of 29386

<<What is your opinion of QLogic as a FC play?>> Let me answer your question indirectly: 1. Someone posted last week on the YAHOO thread about Adaptec's FC chip not working...I decided to chase down that rumor yesterday after reading Adaptec's most recent press release about their decision to get out of producing FC products and have now reached the conclusion that the Yahoo thread rumor about Adaptec's chip not working is more than just a rumor. In fact, it supposedly is not a big secret within the FC community. I also heard that Q-Logic has been gaining customers ( design wins/revenues, etc..) at Adaptec's expense in the FC adapter space . This might explain the recent actions by Adaptec to lay-off their FC workforce as well as issue a press release that could potentially be construed as "CYA". Note that in a legal proceeding, my comments would be ruled as "hearsay" and therefore inadmissable as evidence..The videotape will be out Monday morning <g>. 2. I have not taken the time to research Q-Logic's design wins, revenues, profits, PEG, PE, PSR, etc, etc..so I will leave it to others to determine whether buying QLGC at this juncture represents good risk/reward. What is YOUR opinion?

To: Technocrat who wrote (18105)	9/18/1998 11:39:00 PM
From: George Dawson	Read Replies (1) \| Respond to of 29386

Technocrat, QLogic is starting to look very impressive as an FC play. We have read about the recent FC wins, but their balance sheet (from the latest ValueLine is equally impressive. A few highlights: 1. Common stock 8,650,826 shares. No preferred. 2. Long term debt (due in 5 years) $400 K. 3. EPS - $0.12 (1996), $0.93 (1997), $1.66 (projected 1998 of $81M in revenue). They have an impressive chart: techstocks.com 4. Operating margin has doubled to 25% in the last three years with a cash flow per share of $1.83. 5. This statement from the narrative: "On Friday July 17th, QLogic shares rose 42% after the company reported higher than expected fiscal first-quarter earnings." The main concern for me is that future growth may already be discounted in the stock price, but they are clearly capable of upside surprises. George D.