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

To: George Dawson who wrote (18456)	10/10/1998 1:19:00 AM
From: Ken Richard	Read Replies (1) \| Respond to of 29386

<<<< The preferred holders owned 3.5M shares that could have been shorted initially with 21M shares being offered as conversion shares. >>> It was my understanding that one of the limitation was that they could not own more than 5% of the outstanding stock. 3.5M is well more than 5 %. Also, "21M" shares being offered ? Prior to this non-sense there was a total of about 12M shares outstanding. Kerry suggests that after conversion, there will be a total of 21M to 25M shares outstanding, depending on conversion price. How do these numbers reconcile, particularly with the apparant 5% limitation ? It seems very odd that a singular (even sleezy) financing deal could, according to what you are suggesting, allow the outstanding shares to potentially increase from 12M to 25M. If they never sold, does this suggest that they would own 1/2 of the outstanding shares. Again, how does this reconcile with the 5% limitations ....!!??

To: George Dawson who wrote (18456)	10/10/1998 1:21:00 AM
From: Eleder2020	Read Replies (1) \| Respond to of 29386

>>>1. This fund had plenty of shares to short beforehand. This is a strategy that is apparently used in these deals, since the stock price will decrease with the conversion - either in the case of dilution or the increasing short position. In that case these shares could have been used to cover this pre-existing short position.<<< George that makes total sense as a way of starting the process of conversion. This really fills out the dynamics of how this is all done. Good pick-up. >>>All in my opinion and if I was a financial expert I probably would not be long ANCR at this time - but I am.<<< LOL-Maybe it is like a Close Encounter of the 3rd Kind, and for some inexplicable reason we are all just drawn to Ancor.