RE: RE: SyQuest not going bankrupt any time soon?
>>> Is your recent purchase clouding your judgement? <<<
Perhaps SyQuest is including subliminal messages in their SEC filings, causing me to lose track of reality. Maybe it was the early '70s. <g>
>>> ...As they're ramping production and increasing shipments and inventory, you know they will have additional capital requirements. How long has SYQT been under $2 3/4? You know that there haven't been any warrant conversions under that price. It's very unlikely that the EdHeads will pursue more special deals or financing until after the shareholder meeting. They've got to be running VERY tight on cash... <<<
Michael, I agree with your comments, however:
I didn't go back to confirm these numbers, but off the top of my head, SyQuest had something like $17 mil in cash at the end of March, and received another $12 mil from Fletcher in April in what may have been the most recent special warrant transaction. Together, that should be enough to carry SyQuest past the shareholder's meeting and through the June quarter.
They'll need cash for the September quarter, but there's still something like 50 million warrants outstanding. I think it's safe to assume that the EdHeads will do whatever it takes to ensure enough warrants are converted in order to maintain operations and finance the capital requirements. September could come close to break-even EPS if unit sales continue to grow as expected, which might allow additional conversions to be used solely for continued ramp-up.
So with regards to potential bankruptcy, I guess the bottom-line here is that I'm buying into the EdHead's SparQ estimates for the next few months and believe they'll be able to get their hands on enough cash to keep things going for now.
As far as SYQT stock is concerned, I remain a short-term trader and a long-term bear.
Far out man - Dale |
