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

To: George Dawson who wrote (18371)	10/4/1998 10:32:00 AM
From: Neil S	Read Replies (2) \| Respond to of 29386

George, you wrote in part: <<Just being short in these conditions has a high degree of risk...>> The effects of a news driven short covering squeeze seems limited due to the nature of the Series C which allows the Reg D investors to short the common, use the preferred to cover and engage in hedging transactions with broker-dealers who in turn can short the common. The "look back" language [which defines the conversion price] insures a large supply of low cost conversion shares [at the moment anyway] limited only to the 5% ownership collar and the cumulative 15% conversion limit. <<in fact most people going short would try to avoid a stock with a large short position.>> Someone mentioned to me the other day that a new market phenomenon has started to develop, where [non-participating Reg S/D] short sellers are targeting companies that have done this type of financing and hope to benefit from the "Convertible Preferred Effect". I see SI now has several threads dedicated to this subject: The Death Spiral Preferred Thread Subject 22494 Floorless Preferred Stock/Debenture Subject 19082 Hopefully the effect of the above will be limited as Ancor continues to deliver and the FC/SAN market develops. Perhaps the positive divergence which is beginning to develop between Ancor [the Company] and Ancor [the Stock] on a fundamental basis, will soon turn these "Headwinds" into true "Tailwinds". Neil