Re: Comeback Time - Aug 4 article
Stephen, Here are a few comments in reference to Larry Barrett's article. I'm feeling argumentative tonight...
Shares of SyQuest Technology Inc. shot up more than 20 percent Monday on unprecedented volume...
The volume was not "unprecedented", especially when you take into account the massive share dilution that has occurred.
It reported a net loss of $10.6 million, compared to a $33 million second-quarter loss.
The EdHeads deceptive earnings report worked. The additional 24 million dollars in losses to common shareholders is not accounted for in this article.
Stiff competition with Iomega Corp. coupled with distribution difficulties resulted in the second-quarter loss.
Distribution difficulties, where did this info come from? Syquest has stated a host of reasons why they've been losing money recently (in press releases and SEC filings), but this has not been one of them.
"They've done a good job of cleaning up their balance sheet and getting back in line."
Yep, all it takes is 120 million shares of stock to pay your bills with. Just think how clean it will be when the number is increased further.
In the past year, SyQuest has revamped its managerial team...
And revamped, and revamped. How many CFOs is it now? 3, 4, 5?
"In general, when Iomega does well, SyQuest sort of rides its coattails," Beder said.
This rarely happens. SYQT almost always trades according to its own merrits. (I assume of course he is referring to the stock).
"This a huge market they both serve and they are clearly the two dominant suppliers."
With Iomega sales running 10 times that of Syquest, and a host of other small competitors out there, I would hardly call Syquest a dominant supplier.
Regards - Dale |
