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

To: trendmastr who wrote (22397)	6/4/1999 8:57:00 PM
From: RGM	Read Replies (2) \| Respond to of 29386

Hi - I just read ANCR's latest 10k to figure out why this stock has gone up during the last few days. It appears that everybody doesn't care if this company issues a $7.20 stock warrant to a customer for every $67 of revenues from that customer. I think that's a great incentive for a customer to do business with this company. This is better than giving the customer a discounted price, because the warrant will not decrease EBIT. Unfortunately, the shareholders are paying for this customer's revenues cause those warrants will negatively impact the EPS results. What is even a better incentive for Sun to do business with ANCR is if the warrant price is less than half the market price of the stock. Therefore, this company and its market maker's are going to keep the hype up on this company so more small investors buy this stock at this price level. This company will keep the hype up cause they are running out of cash and they mention it in their 10k that they are going to need to obtain external financing sometime this year. This company's stock will be diluted BIG TIME with issuing warrants to generate revenues and issuing stock sometime this year to obtain working capital for next year. They need to copyright this new method for obtaining customers cause I'm sure other companies are going to copycat this new sales angle. Anyone know if other companies issue warrants to customers as an incentive to buy their stuff? If so, please specify or list. Comments based upon fundamental analysis, common sense or logic will be appreciated. Rob