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Non-Tech : The New Iomega '2000' Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (1306)	7/1/1999 10:58:00 PM
From: Reseller	Respond to of 5023

Here's Herb's buddy... What people in general don't say is what they were losers in, we don't like to bring those up. Rocker Partners are probably still hurting from this one. The Scoop on Syquest Iomega (IOM:NYSE) rival Syquest (SYQT:Nasdaq) has never been able to dig itself out from under. However, now with Iomega stumbling, Syquest is finally starting to get attention, in part because of the success of its SparQ drive. Yet you wouldn't know it from Syquest's stock, which aside from yesterday's heavy volume has generally languished since the SparQ's rollout. Investors have been turned off, in part, by the number of Syquest shares outstanding. On paper, there are 72 million shares. But what's really frightening is that another 100 million or so are in the form of warrants that Syquest gave in recent years to suppliers and others as a way to get them to give the company a second chance. Investors have worried that once those warrants are exercised the dilution from so many shares will overshadow any improvement the company may eventually show. So, why would anybody own the stock? One large Syquest holder, very much a not-for-attribution type, told me Wall Street's mistake is not factoring in the cash Syquest will get when and if the warrants are exercised. He figures it'll be in the range of around $250 million. And with 170 million shares outstanding, even at today's price of around $3 Syquest's market value will be just $500 million -- "just,' that is, when you compare it with Iomega's $2 billion. Both companies are expected to post losses this quarter. The difference is that while Iomega's business appears to be getting worse, Syquest's appears to be getting better. This one will be haunting for a long time. Regards Reseller

To: Gottfried who wrote (1306)	7/2/1999 12:04:00 AM
From: Reseller	Read Replies (1) \| Respond to of 5023

Short-seller Marc Cohodes of Rocker Partners have to buy a lot of IOM shares and I like that, I think we'll be friends, it appears that IOM has bottomed, and they haven't covered. This has to be scary if you consider that by not covering in the 3's those short have lost $23,000,000 give IOM a little over 4 points and they've lost $100,000,000, that's a 100 million. They're locked into this one, there's no easy way out, either they buy 23,000,000 ( or more by now ) shares and cover or pray that IOM goes out of business and it doesn't look like that's going to happen. IMO the recent revelation that Sony is now buying and selling Zip drives with their systems and Clik! looking to come into it's own has IOM attractively priced and could easily be put into play. I thought I heard champagne corks popping when IOM preannounced but alas it was liquid Maalox being passed around. Is there any doubt why they're bad mouthing IOM so much. Regards Reseller