miklosh, Syquest has a lot of history and carries a lot of baggage. As Emory would point out, management has achieved important success in some key areas. As Rocky would tell you, great products will soon be available. As I have pointed out, the EdHeads have created a financial mountain nightmare for their shareholders.
Although I certainly have strong opinions about about Syquest's management, and concerns about the rumored products, I believe that these issues will eventually be overcome by Syquest. This will, however, take a significant amount of time, even if the SparQ and the Rocket arrive in a hurry and are hits.
With this company, one has to be aware of their current and future share dilution situation. In addition, running some sort of projection as to what type of sales (and profits) could be expected if everything worked out great with their new products is a must.
If your results show that Syquest can justify its stock price, then I'd say buy the stock. As for me, I do these checks on a regular basis and currently could not value SYQT over $3.00 a share under the most bullish of scenarios.
This does not mean SYQT won't trade much higher due to speculation and momentum. (and I'll be there trading when it does). It is simply my opinion that the stock is grossly overvalued.
Regards - Dale |
