Michael, as Billy Joel sang, " I may be that lunatic you're looking for"
I am very bullish on SYQT and basically reflect a totally opposite viewpoint from your most recent post this morning. I like SYQT short, intermediate and long term.
Although I felt the CEO could have used a few lessons in positive speech deliveries, his message came through loud and clear to many of those that have taken the time to research the big picture. In other words would it have been better for the CEO to have replied, "We will do everything possible to ensure that we can meet the demands to fill the pipeline, by taking whatever measures are necessary to finance this unprecedented demand."
Don't underestimate the power of the retail shelf, nor the effect of a short covering, if that revenue stream is validated.
Yesterday's action from 2:00 on, millions of shares at the offer price without resulting price movement was indicative of shorts piling on the wood. Today's drop to the 2.75 level was expected, as it represented yesterday's gap up at the open, and needed to backfill to that level. If we can raise back above the $3.00 level, it will test the conviction of the shorts, and we could see an explosive upside movement.
But, as both a trader and an investor, I am betting that there are several press releases waiting in the wings that will further test the shorts resolve.
On a longer term view, I feel that as the trade press continues to spotlight Syquests drives, and the price per meg continues to be lowered, it will only enhance Syquest's market share and apply margin pressure to Iomega, that they can ill-afford.
I am in no way saying that Syquest is a gimme, quite the opposite, I feel it is a very speculative gamble, but at the present I feel the momentum is more in favor of those long the stock, rather than short.
RB |
