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

To: iceburg who wrote (18411)	10/7/1998 9:24:00 PM
From: Greg Hull	Read Replies (1) \| Respond to of 29386

Steve, <Is the monthly 15% conversion bounded on month boundries?>> I have not come across the 15% conversion limit mentioned in the SEC filings I have read. It may be there, but I've missed it and don't know how it is bounded. <<I.E. their November conversion price has now been secured at at most 1 1/4.>> I think you're saying that there is one conversion price that applies from the beginning of the month until the end. Am I understanding you correctly? My reading is that the price can be different every day. It is often the same from one day to the next if there are 3 or more low days in a row. These same three days will determine the Series C conversion price for the next 2-3 weeks. <<I don't forsee them spending more shares to try and drive the price any lower, the risk/return is not there. If they keep selling tomorrow it is out of ego and spite, not out of good judgement.>> I would bet on them trying to drive their conversion price to $1, again, if they can, that is if their is no news in the next week. The difference between the current conversion price of $1.11 and a potential conversion price of $1 is significant. The lower price gets them another 1000 common shares per C share. If the price were to pop to $2 with a big announcement, these extra shares deliver another $2000 per C share. Remember, they paid only $10,000 per C share in February, so another $2000 just 8 months later is a nice incentive. The annualized return would increase by 50%. That is, it would be about 225% instead of 175% on each C share. The only thing that is going to save us is more good news. Eventually they will have played all of the aces from their hand. Greg