Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Kerry Lee who wrote (20801)	2/15/1999 10:46:00 PM
From: Douglas Nordgren	Read Replies (1) \| Respond to of 29386

Kerry, to answer your questions - No, no, and no. Just looked at the FC switch companies and assumed a "reasonable" p/s valuation for a "generic" IPO. Sorry, don't have the IPO valuations of the companies you mention. You're right, no effort was made to compare Ancor's current p/s valuation with other networkers etc. This was a tongue in cheek exercise, mind you, and I thought that was understood. My apologies if this wasn't made clear. Would love to see any comparative p/s numbers for Ancor if you feel so compelled and can devote the time. TIA Douglas

To: Kerry Lee who wrote (20801)	2/16/1999 12:14:00 AM
From: eric sahlin	Respond to of 29386

Some PSR valuation estimates: Assume ANCR gets 41.5 % of FC switch revenues: ANCR Revenues (based on IDC report and 41.5% assumption). 1999: 32,785M 2000: 78,020M 2001: 135,705M 2002: 203,765M Following Prices based on PSR ratios & the corresponding year revenues discounted at 25% (fairly high) to compensate for risk (used 24 million shares outstanding). PSR=10 1999: 10.93 2000: 20.81 2001: 28.95 2002: 34.78 PSR=8 1999: 8.74 2000: 16.64 2001: 23.16 2002: 27.82 PSR=6 1999: 6.56 2000: 12.48 2001: 17.37 2002: 20.87 The above provide a scenario to see how the prices might vary given different PSRs and given the riskiness of ANCR achieving the above revenue estimates. (I guess the big question is; how far out does the market look as far as year and revenue?) Eric