There are some pretty significant estimates being used for the China market by the Chinese according to management: the market potential for the Syjet is 27 million UNITS before the end of 98. If they can deliver those qualitities, it is a conceivable number considering
the population in China! and India! For whatever it's worth, some thinks the company could achieve $100 mil quarter run rate in not so distance future. Let's just forget about the history of the company for a while, we want to ask ourselves the following questions:
1. Is it removable media a growing market, domestic and internationally?
2. Is there are room for two vendors like the PC business?
3. Do we agree Syquest do have a competive offering?
4. Is China a BIG BIG market, if you can get the business?
5. Have Syquest made progresses in terms of liquidity, reducing losses, setting up distributions and developed better products?
6. Does the company have the potential doing 25% of what Iomega is doing considering the products are competitive, momemtum are gathering for the company?
7. Should Syquest achieve 1/4 th IOM's potential, that will make Syquest a $400 mil company --- IOM has 2x plus multiple to revenue, what could be Syquest's upside if we have a $800 mil market cap company?
8. What is your risk reward ratio in investing this company? At $2.50, possible downside is to $1.50 ?? Upside ?? $6 $7 $8 ???
Comments from Shorts are welcome ....
9. As to the company's big losses in the past, it is pretty scary. But, one may want to take a look at Segate and West Digital's (was at $4 one point) history before they made the tremendous upside stride???? |
