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

To: George Dawson who wrote (19075)	11/1/1998 9:26:00 PM
From: Greg Hull	Read Replies (2) \| Respond to of 29386

George, <it didn't seem like I was reading an SEC document or calculus text>> I'm sure this is the minority view. <<but wonder if there couldn't be some estimates based on setting L(t) to zero. I think that would reflect the motivation to avoid all long and short term risk by staying unconverted, converting and selling immediately, or selling short against future conversions.>> I have a hard time convincing myself that the preferred shareholders would find it advantageous to hold a long position. Yes, it is the only way to get a 10 bagger, but I wonder if that is the purpose of such investments. If we examine the possibility that they have no long position, the short position might reflect desirable selling prices of the past. One question I have is why is the short position not larger than it is? Clearly they do not own all common shares previously converted. Some may have been sold long and some may have covered older short positions. Why not cover all short positions, or why cover any? Perhaps we are seeing the different strategies of the respective shareholders. Or perhaps they sell short only the number of shares they can convert now and in the next 4 weeks, that is the number of shares for which they know their conversion price. While I would like to see good news announced as soon as possible, it would be interesting to have no news prior to 11/15/98 and see if the short position declines. This would help us rule out or in motivations for short selling. If short selling is merely the preferred method of disposing of their preferred stock, their actions may act as only a sea anchor on the price of ANCR. It would not reverse a positive trend, only slow it down. How do you think the end game will play out? Greg