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Technology Stocks : SYQUEST

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To: Joe Reich who wrote (4200)10/11/1997 5:41:00 PM
From: Ginn   of 7685
 
Regarding issuing for the double size of stocks is the best time to do now than later on.
As a investor, I only want to see it to turnaround and make money at the this stage. There are some fundamental reasons to issue more shares at this stage.

1. Investor will not demand that much at this time as long as company can make money. If company issue more shares after positive earning, then investors will feel their profit was shrinking to 1/2.

2. Company need capital to run the company and paid off the debts from the creditors. I am sure if company did not see the potential of company then it is just the waste of money. And by doing this, company can save on interest expense. As long as investors make sure company did not waste money, then anything to promote the company and product are always the good sign.

3. Company ask for issueing of incentive stock plan to employees and executives. This is also show the positive sign.

Psychalogically, I will prefer to see company to issure more shares so that if the earning is negative, then the negative is splitted to others. But I don't like to see the positive profit to be splitted later on(that will make stock drop).

Probably that's the reason for share diluted now than later on.

Good luck!!
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