JustMy2Cents,
So what you're saying is that I should follow this dog a little closer? Maybe.
I stand by my statement that any signs of strength in the stock will meet serious selling pressure.
If Syquest shows positive GROSS margins any time this year, I'll be impressed. Very impressed. I don't think it will ever happen with their current product lines, but if it does.... Well, I've been wrong before.
Also, where does Syquest's future (ie. next quarters) financing come from? Warrant conversions? Not unless Syquest entices it, by offering discounts from the current price. Or, is that what they just did.... (More dilution.)
Could you please explain their business model to me?
<<44.7 million shares will not hit the street as per your interpretation of the S-3 filed on 6/11/98. If you look at the S-3/A filed 2/25/98. 45.8 mn shares were offered. Compare the two and you will see the beneficiary owners prior to conversion are mainly the same. In other words, most of the investors in Syquest have not sold in the past, and in my opinion the will not sell now. The latest S-3 is basically lowering the price for which the beneficiary owners may "buy" the shares at. It was $2.61/share in the 2/25/98 S-3/A and it is now $1.4375 due mainly to the fall in the common shares in the marketplace.>> |
