Darrell, I read with great interest what you "heard" and speculated upon with regards to Syquest, the SparQ and Legend/China. Much of it would tend to make sense and I agree that there are quite a few IFs still remaining out there.
There was one significant factor that didn't quite seem to fit.
The current information I have indicates the SparQ will be introduced in November and will initially be available in internal EIDE and PP versions, with the SCSI to follow the subsequent quarter (Jan-Feb-Mar '98). It seems product will be shipping in a very short time frame.
If these dates are correct, then it doesn't appear likely Syquest will be waiting for a Legend/China plant to be financed and built before they begin production.
However...
If and when a joint venture plant is built with Legend in China, one important factor we still have no idea about, is how the income will be divided. One would have to assume that this would reduce Syquest's profits from what would most likely be already low margins (due to their very agressive pricing plans).
As far as the financing goes, I believe the shareholders will be voting/approving the 240 million shares (and a few million shares for the EdHeads) during the first week in November. I wouldn't be surprised if deals for some of those shares have already been made. In addition, I would imaging that quite a few share conversions have been made recently with the price run-up. Some of the conversions will generate investment capital into Syquest's coffers, which depending on a number of factors, could be considerable (as would be the dilution).
Regards - Dale |
