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

To: jim g. who wrote (21752)	5/13/1999 4:07:00 PM
From: doc	Respond to of 29386

i was out today. would appreciate it if someone could tell me what happened about 1pm. intraday chart shows close to 150k shares traded. was that one large trade or multiple small ones? thanks

To: jim g. who wrote (21752)	5/13/1999 4:15:00 PM
From: eric sahlin	Read Replies (1) \| Respond to of 29386

Some thoughts: I am comforted by the response the gentlemen received at the shareholder meeting that complained about the options repricing. I think Ancor managments response to this complaint was probably one of the most "juicy" tidbits offered. The fact that they mentioned "3Com" was after ancor engineers says alot. And now 3Com has bailed out of developing their own switch. What does this say about Ancor engineers? We on this board have known this for a while but this says to me that these engineers have a "high" market price due to their scarcity and expertise. Important enough that 3Com bails on internal switch development because their isn't enough FC engineers available (3Com = too late; market is ramping too fast). If Ancor gets bought out guess where the value is (this is a low hard asset business)? As we all know its in these engineers, the OEM relationships and the Ancor name. Now if we take a look at Hitachis 100 million investment in an FC lab, I wonder why they are investing and 3Com decided to scale back (I guess 3com does have an investment in is it Gadzoox?). I speculate that Hitachi will use the lab for interoperability issues and new product development but they obviously need a very strong relationshiop with seasoned switch and general FC engieers to make their 100 million investment pay off. The fact that they chose Ancor says alot. I see that Hitachi is trying to be the leader in this FC space (hence HP lining up with them and the 100 million investment). Doesn't it seem that HP lining up with Hitachi says that HP is kinda giving up on investing heavily in FC development and thus letting Hitachi take the reins? In summary, Hitachi choosing to build a relationship with Ancor and its industry leading engineers and then investing in a lab so that Ancor engineers can be exposed to more development resources is a powerful statement in regards to Ancor. An equtiy infusion from an OEM in my opinion will come from Hitachi; this seems like a very very strong relationship. The heat is on for IBM/EMC...Hitachis investing a good amount of cash in FC development, 3Com fizzled...what are they going to do? Any comments or opinions? Eric