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

To: Ken Richard who wrote (18387)	10/5/1998 11:41:00 PM
From: Kerry Lee	Respond to of 29386

Regarding Reg D/ Hedge Funds, I think the notion of "Long term Investor" has been somewhat influenced by the debacle of LTCM and other funds that may be liquidating positions in some stocks to meet margin calls and/or offset losses in other investments/positions. In other words, it is conceivable that some of these funds ( eg Tail Wind)need the cash asap. Regarding the concept of manipulation, while I have no proof, I find it interesting that throughout the extreme volatility of 100-300 point daily drops in the Dow and 30-100 point daily Nasdaq drops over the past 6 weeks, that the ANCR never dropped below a buck, even though the sellers were there with stock for sale in size. I suspect that Reg D have prevented it from dropping below $1 and have been fairly successful in bleeding out shares in a relatively orderly fashion ever since ANCR dropped below $2 in August. During the period Sept 21-Sept 30, there was $2.5 million in Reg D conversions...not bad. In fact, there is now less than $1 million of Series B left to convert, which leaves Series C guys who are limited to 15% per month conversion. If one were to entertain buying ANCR at this level ( $1.00-1.50), given the improving fundamentals ( $2 million Boeing AWACS order, INRANGE $9 million cash infusion ) and improving prospects for FC/SAN deployment, I continue to believe that the Risk/Reward for ANCR is compelling for those who have an investment/trading horizon of longer than 6 months. Obviously, continued bleeding out of Reg D shares creates an overhang on the short term, but that also creates trading opportunities for nimble short term traders.