With regards to financing in the future, if SYQT really has signed on a large OEM, I would think that they would want a steady supply for their customers. Because of this, SYQT has opened up yet another door for future financing. Back to my last post on SYQT selling drives at a loss, I mentioned that management did admit this, but said that next reporting quarter, they should be almost break even, and they expect to be selling both, cartridges and drives at a profit by the December quarter. If they can do this as well as sell 500,000 drives, they should be in good shape. I'm looking for up to 70 million in revenues next quarter and over 100 million for December ending. I'll post my quick and dirty model when I have time. By December, we should easily see a price/sales ratio less than 1. Suddenly SYQT doesn't look so expensive. I also think IOM slashing prices says bundles about how SYQT is affecting their business.
I took last week to average down. My view is that the odds of SYQT going bust vs. performing a turnaround are diminishing.
RAVEL |
