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Technology Stocks : SYQUEST

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To: James Choi who wrote (6131)4/10/1998 4:03:00 AM
From: Andrew Shih  Read Replies (1) of 7685
 
>>The possibility of these warrants being exercised has been there all along. It is clearly warned in their SEC document.

Now, wouldn't the market have figured that fact into the price of the stock? Or will it take this news as something unexpected? It seems to me that the market must have reacted when the warrants were issued, not when it is exercised. <<

Well, I'd bet that most of the investors in SyQuest come from
the retail side of things. I doubt there is a lot of Mutual
fund money here. Thus, some of this information tends to be
overlooked. Heck, the 5-10x increase in shares outstanding
has actually improved the eps numbers.

-Andrew
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