IF the SparQ
Michael, I believe you have said in a few words what my years of following this stock have revealed: "IF, IF, IF."
Since the beginning of 1996 when SYQT took its first major dive, the company has experienced multiple investor lawsuits, radical management changes, incredible product delays, extreme competition, major share dilution, reduced revenues, and huge consecutive quarterly losses. They've burned through well over a $100 million in newly invested cash, and delisting and bankruptcy have knocked on their door.
But that's all history, right?
The reality of today's Syquest is that as long as they are a going concern, there remains the possibility of a comeback. The removable sector is expected to grow significantly and it seems logical that this well known name could grab a piece of that pie.
It has been the 'IF, IF, IF" that has kept this company alive. IMO, the EdHeads have done an excellent job of perpetuating the belief that Syquest is on the verge of turning things around. Thus far however, their numbers have consistently told a different story.
While I believe there's plenty of opportunity to make good money trading this puppy, I've haven't seen anything that strongly suggests that things will definitely change.
But... IF the SyJet, IF the charts, IF China, IF Legend, IF some OEMs, IF cost reductions, IF ramp-up, IF a takeover, IF the Rocket, "IF, IF, IF."
Now there's IF the SparQ. IMO, This is the one IF that could seriously change Syquest's world. IF the specs, pricing and relative near term availability are correct, and IF Syquest can ramp-up and turn a decent profit on this drive and disks, then the company could have a major winner on its hands.
However, even with a major winner, I doubt I'd soon take a long position. The current and future share dilution is incredible, and Syquest would have to become super profitable with sky-high growth projections to justify even today's stock price. And then there's the EdHeads... watch your back.
Regards - Dale |
