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

To: iceburg who wrote (18745)	10/23/1998 1:35:00 PM
From: George Dawson	Read Replies (1) \| Respond to of 29386

Steve, Sorry for the delayed response. I read your post and thought about it long enough to come up with post #18764 last night along with the supporting posts (large volume spike with minimal impact on share price). I don't know of any way to get at the number of day traders or short term traders in the stock. All I can do is guess about where short term dollars could be parked with the biggest chance of gain and I don't think it would be Ancor - especially with the recent correction. From my post I think the converted shares are the ones being sold to account for most of this activity. What I am most concerned about is the assumption that this activity will continue the way we are seeing it for the last half of the conversion. Currently, it appears that converted shares are being sold at a profit and this provides incentive for maintaining an orderly market above the one dollar range. My big question is: Is there a point at which these incentives change? Near the end is there an incentive to push the share price to a very low range? If the short position continues to build there will be plenty of leverage to make it happen. I think the actual behavior of shares involved in these transactions needs to be considered. I don't think I have gotten my questions answered about this - or maybe I'm not asking the right questions. The general responses have been very pessimistic. What I would like to see is a graph of these factors by a company undergoing a similar conversion. Greg - have you run conversion prices out into the future with sub $1 share prices? According to the rules in the S-3 is this possible and what effect does this have on the dilution? I am not a financial expert - I am not even close, but it seems to me we are in a completely different position than we were in a year ago. Now we know Ancor's technology is great - but there appears to be something outside of the usual market influences affecting our investment. George D.