Arrow Hd., As far as published earnings expectations for this quarter, well, Zack's and First Call don't have any specific info. I think it's safe to assume however, that there's a general view that SyQuest's March quarter will show marked sales improvement due to SparQ, but they will still post a significant overall EPS loss.
I believe the potential for surprise exists with a number of possibilities such as: 1) Reporting SparQ sales for the quarter well in excess of 200K units, 2) Forecasting a major SparQ ramp-up to 500K units per quarter within the next 3-6 months, 3) Predicting a return to profitability date within the next 3-6 months, 4) Showing a dramatic gross margin improvement.
Based on these issues and a few others perhaps, I'm guessing that SyQuest may move up in advance of earnings due to speculation. That's what I'd like to see and that's when I'll bail.
As far as the long term goes, I believe SyQuest is doomed to become an average company at best. Once again, competition, financials, dilution, margins, etc. will all catch up with them in time, and the stock will eventually be valued appropriately.
For now however, trading opportunities exist and that's where I'll point my efforts.
Regards - Dale |
