To: +Dale Stempson (6889 )
From: +HRP
Tuesday, Jul 21 1998 11:08PM ET
Reply # of 6896
<< Dale:
Would it be fair to say that Syquest has been able to obtain financing during the past
year, notwithstanding substantial losses, because of the expectation that Sparq drives
would eventually lead to a profit?
I noted Rosencrans' claim that Sparq sales volume is starting to stagnate. If the after
market volume holds steady and Syquest puts more emphasis on OEM sales, is Syquest
heading down the same path as Iomega which suffered because of the smaller margins
on OEM drives?
Considering the above together with the announced hiring of CIBC Oppenheimer, how
likely is it that Syquest now realizes that the necessary sales volume for a profit is not in
the cards and that a purchaser is being sought before all future financing dries up? >>
hrp
<< From a marketing standpoint that is highly unlikely in my opinion.
Syquest is beating the main competitor (IOM) and doing it using the right tools to become the leader. They
have developed the product to rival IOM. Remember, it takes 10 IOM zips to equal the 1 SparQ.
And the price difference is astounding.
No, Syquest is out for blood and they have more than the SparQ in the pipeline.
Long on SYQT...... And enjoying the ride. >>
Tim Dickson
Tim:
My best wishes with your investment.
However, your post does not address any of my questions.
Dale, may I have your well reasoned response? Thanks.
hrp |
