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

To: Douglas Nordgren who wrote (21541)	4/27/1999 2:39:00 AM
From: Kerry Lee	Read Replies (1) \| Respond to of 29386

Rumors from the Street: 1. there is an institution with a rather large SHORT position in ANCR, ie in six figures ( number of shares short )... 2. reaction to BRCD IPO is sizzling HOT. My take: IF Rumor #1 is true, it would not surprise me based on what people have observed on Level 2 screens the past 2 weeks and my gut tells me there was even more shorting going on today. I followed the early trading today and last half hour and it appeared that everytime there was a mini-rally/uptick, size ( 5-10 pounds )suddenly appeared at the offer..a sign of shorting ( Nasdaq stocks require a short sale to be executed only after an uptick in the bid )..looks like someone was "averaging up"/protecting their short position by preventing the stock from breaking out over 7 3/8. This is NOT to suggest that all the selling was shorting..I'm sure many "seasoned" ANCR veterans sold today based on history with the objective of buying back their shares after Wednesday's call. Will the "profit takers" be patting themselves on the back OR will they outsmart themselves?? Should be an interesting week with the CC on Wednesday and with Interop beginning next week. IF Rumor #2 is true, it bodes well for ANCR in the May/June timeframe..rumors are that Brocade IPO will be priced by underwriters in the $400 million range. IF this is true and IF the roadshow proves successful in generating institutional orders of double/triple the share offering size, then Brocade IPO could double out of the gates, which translates to $800 million + market cap. It would not be unreasonable for traders to look to peer groups and "revalue" ANCR, as KJ Moy alluded to the other day. Examples of "re-pricing" occurred in stocks like PSIX ( delayed reaction to other ISP valuation increases ) and more recently, ITVU which ran-up in sympathy with RNWK and BCST. IF Brocade IPO is successful out of the blocks, "Fibre Channel/SANs" will become yet another buzzword and new investors/traders will look to cheaper FC plays. For those who think such an IPO price for BRCD is impossible, WEBT IPO was priced by underwriters ( 2 Tier 2 underwriters ) at $150 million market cap vs annual revenues of $8 million.I sold it for $35 ( $400 million market cap )and yet it defied gravity and now stands at $700 million market cap. PS - is it just me or do you get the impression that today's HDS press releases were specifically geared to North American market ( eg "Fortune 300 Companies" )..I recall that Hitachi sells worldwide and that Ancor demo'ed with Hitachi at the CeBIT show recently in Europe...yet there is no mention of what Hitachi is doing with Fibre Channel in other parts of the world..What about Japan/Asia and Europe? Food for thought...