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

To: Greg Hull who wrote (18482)	10/11/1998 8:32:00 AM
From: KJ. Moy	Read Replies (1) \| Respond to of 29386

Greg, <<<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.>>> Agreed. However, the 5% maximum ownership rule still apply even with their net position being flat, i.e 700,000 long, 700,000 shares long. He has to cover with his long position before converting again. If Ancor becomes an illiguid stock, their scheme will not work. They will be stuck with a 5% ownership with lots of preferred shares left. They can make their money back if 1. Ancor redeems their shares. 2. Their ability to sell is not limited. <<<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.>>> May be, just may be they also want Ancor to succeed. The reason being, that is the best way for them to reap in big profit. No doubt, they have been shorting Ancor to scare many potential buyers. They effectively manipulate Ancor to the current level. My argument is that it will do nobody any good if Ancor becomes illiquid. I don't think their intentions are to recoup their investments. They are in it to make lots of money. The only way that can happen is for Ancor to go up from here. KJ