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Technology Stocks : SYQUEST

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To: Troy Shaw who wrote (5526)2/12/1998 5:25:00 PM
From: SJSharky   of 7685
 
Troy--

Looking at the gross margins, I believe your comment is true. I think they were (and still are) hoping to ramp quickly to ideally create a drive that is capable of sustaining a reasonable gross margin at a $200 price point.

At this point, they need to go for broke because they can't dilute the stock much more. And they'll need to cut the exercise prices or offer sweeteners to entice investors to exercise the outstanding warrants.

I really think this drive is too good to be true. I wonder what kind of quantities they will need to manufacture (and sell) to produce a reasonable gross margin.

--Ryan

That's true, but my opinion is that SparQ was a desperation play.
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