SYQUEST Message Board - Msg: 2828868

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Technology Stocks : SYQUEST

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To: Ralph Bergmann who wrote (4851)	11/27/1997 11:43:00 AM
From: Dale Stempson	Read Replies (1) of 7685

Re: >>>what do you think would be fair price for syqt after the 150 million shares are out? Assuming a success of sparq and a turnaround in the next year I could imagine to jump back into syqt. But which price would be reasonable? My rough guess will be 70-80 cents in half a year. What's your opinion about the bottom line for the next half year?<<< OK. For the fun of it, let's pick a number out of the sky. We'll assume of course Syquest has overcome all existing financial and competitive problems. How 'bout we say the SparQ becomes a smash hit in the second half and starts hummin' at a million units per year pace, and resulting annual revenues from drives and disks more than double to about $250 million a year. Let's further assume that Syquest can get their costs totally under control and are capable of generating a generous net profit margin of 3%. If we then use the 150 million shares number, we'd end up with EPS of about 5 cents. Throw in a 40 PE and we'd have a $2 stock. There are of course countless variables to consider when making fantasy projections, but this might serve as a starting point when considering the possibilities. (a very liberal one IMO). Regards - Dale

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