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I think this thread is ran by iom holders trying to spread bad news for the syqt holders. Are you iomega guys a little scared so you have to post on this thread?
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I think I'm a pretty level headed guy. I try to keep everything in context and not get too excited about things. I'm sure no one here remembers, but I was the first to find and post that tidbit about SparQ found on the bootnet web site way back in October. At the time I was quite nervous and considered dumping my IOM holdings (or at least buying some SYQT). But then decided, this was just going to be Syquest's last desperate attempt to stave off bankruptcy.
Syquest is currently trying to sell their 40 million share offering on the back on their new SparQ drive. And they're going to do everything they can to keep their stock price up to complete their offering. Remember, the shares that are being offered are being sold by the warrant and preferred shareholders. I believe most (maybe all) of the warrants and preferred shares convert to common shares at a price greater than $3. So if the stock price doesn't stay a certain amount over $3, this offering isn't going to happen. Do you see why? The warrants and preferred shares haven't been converted into common stock yet. And the holders aren't going to convert unless they can be assured that they're going to be able to sell the converted common shares for greater than the conversion price. If you think about it, you can see that this is really an offering by Syquest. They're going to sell common shares to the warrant and preferred shareholders at ~$3/share and the warrant and preferred shareholders are just flipping those shares at some price above that.
As I mentioned before, today press release ("strong demand for SparQ")is the third time they've made the same press release. Syquest is trying hard to keep the stock price up. If they succeed and the offering goes through, then they'll be around for a while longer. If not, SparQ is going to accelerate their descent into bankruptcy. (Ok, I don't know that. But looking at their zero margins selling the higher priced SyJet drives, I can't imagine how the margins on the SparQ drives are going to be anything but negative.)
Joon |
