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

To: Zeev Hed who wrote (22268)	6/3/1999 1:09:00 PM
From: iceburg	Read Replies (1) \| Respond to of 29386

Zeev You are way off base with this one. Right now the capitalization of ANCR is pretty close to $400 MM, and if the figure for the total market is indeed as you cited from IDC $1.4 Billions by 2003, well the current price assumes that ANCR may capture 30% plus of that market in three four years, from a base which is quite small. 1.4 Billion is the projected annual sales in 2003 whereas $400M is the Market cap of ANCR now. Big difference. If Ancor trades at a reasonable 5-times-sales and has 30% of the 1.4 Billion we are looking at a market cap of 2 Billion for ANCR in 2003, which would put us right around $60/share assuming 30 Million shares by then. All those numbers are also conservative IMO. Steve

To: Zeev Hed who wrote (22268)	6/3/1999 2:22:00 PM
From: GuinnessGuy	Respond to of 29386

Zeev, "As for the warrants price, since the negotiations must have taken few months, it could very well be that at the time of agreeing on the warrants price, that is where ANCR was trading at, and thus, this is not as unusual as Mike was suggesting." It's hard for me to figure what Mike was thinking was unusual. Was it the extent of the discount against yesterday's price? Or was it that the level of Sun's investment was contingent on how much business that they do. I believe that he found the latter to be highly usual but nevertheless legal. Have you seen this kind of arrangement before, where the vesting of warrants was dependent on the level of business between two companies? Also, I'd like to welcome you - one of the most, if not the most bookmarked people in SI to the Ancor thread. And please stick around as I think that this may only get more and more interesting, not to mention profitable. Craig