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

To: Greg Hull who wrote (19156)	11/6/1998 6:47:00 AM
From: Craig Stevenson	Read Replies (1) \| Respond to of 29386

Greg, I agree with your assessment of the current situation. The short interest report would seem to be the key to figuring out whether our theories are in fact correct. I also believe that we should see the number decline fairly dramatically, as shares are converted to cover the short position. It will also be interesting to see what the status of the preferred shares is at that time. We might be able to get a hint regarding the short position by contacting Ancor on the 15th, and seeing how many preferred shares have been converted since October 15th. If a large number have been converted, and we haven't seen a corresponding rise in selling, it might indicate that they were being used to cover the huge short position. You have probably reached this conclusion too, but Reg D selling for the sake of selling isn't nearly as concerning as selling for the purpose of lowering the conversion price. If a Reg D holder simply wanted to bail out of ANCR, there is a lot of incentive not to sell too quickly and drive the price down. On the other hand, if they want to lower their conversion price, there is a LOT of incentive to sell as many shares as quickly as they can. I also noted with interest the new names on the conference call. Craig