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

To: KJ. Moy who wrote (18472)	10/10/1998 3:24:00 PM
From: Eleder2020	Read Replies (1) \| Respond to of 29386

>>It is debatable if I want to sell at $2 or not if I think Ancor has a good chance to hit $10 or $20 next year. <<< If I had loaned Ancor millions of dollars, I would take the quickest most riskless route to recover loan and maximum profit. Shorting seems to be the weapon of choice. >>>Ancor: I would continue to execute the business plan, hire competent workers, work hard to bring in OEM deals. I would consider 'redeem' these regD perfered shares some time next year when I have more deals and money in the bank. I would even consider 'redeem' even if I have to borrow against my 'account recievable'. The RegD guys are depressing my company. <<< Another strategy if Ancor attains more money through an OEM or another Inrange type deal is to buy enough shares on the open market at depressed prices to support the stock price which would probably attract some new buyers & might cost less then covering the loan and take the steam out of the Reg D converters and create less dilution , which is also attractive to new investors. Ancor could then do 1 of two things. They could either retire those shares or sell them for a substantial(hopefully) profit in the future and pocket the money which would flow down to the bottom line or that money could be used in some future expansion.

To: KJ. Moy who wrote (18472)	10/10/1998 8:00:00 PM
From: Neil S	Respond to of 29386

KJ, you wrote: << I would consider 'redeem' these regD perfered shares some time next year when I have more deals and money in the bank.>> Right To Redeem: [From the 8K Feb 23, 98] Ancor has the right to redeem the preferred 12 months + 1 day after the closing [starting ~ Feb 99] with a thirty day written notice and in a minimum increment of $1 million at either the conversion price in effect at that time or the closing bid, the language is not perfectly clear to me. It seems an unlikely use of cash in the near term but possible as the Reg D does not time out for several years i believe. It's a nice option to have. IMHO, Neil

To: KJ. Moy who wrote (18472)	10/10/1998 11:32:00 PM
From: Greg Hull	Read Replies (1) \| Respond to of 29386

KJ, <<All IMHO. Let me know what you would do if you were one of the RegD guys>> My thoughts differ from your's, a little. <I want to own the maximum number of shares without jeoparding the company. I already own 700,000 shares, 5% of 14M shares outstanding. I would not sell or short at current price because I just converted at $1 and change>> I think most of us are of the belief that the preferred shareholders own the maximum number of common shares allowed. I am not aware of any proof of this. The S-3 merely states the maximum number of shares they may own. By going long, the preferred holders are assuming greater risk. They are in a much safer position holding unconverted preferred shares, or converting and selling. Based on the comments from the Floorless Preferred board that George introduced to us, the safest thing for the preferred shareholders to have done was to short the entire underlying common shares. They would have had no trouble finding shares to borrow, because the offering prospectus was their collateral. Clearly, they did not do this, at least not all of them, because the monthly shorting report has never come close to the convertible equivalent. I am assuming that any shorting by the preferred holders would be reported in the monthly figures. It would be interesting to find out why they did not short to the max. The next safest action in my opinion is to convert Series C shares after selling. This approach also delivers high returns with no exposure to market risk. If they are willing to incur market risk, it does seem that the last 2-3 months have been a good time to convert Series B shares. I've been led to believe that these investors are usually risk adverse, but maybe these guys are different. Greg