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Technology Stocks : SYQUEST -- Ignore unavailable to you. Want to Upgrade?

To: Fred J. Ledo who wrote (4565)	10/30/1997 6:40:00 PM
From: Michael Coley	Read Replies (2) \| Respond to of 7685

RE: Where's the discussion? >> I was looking foward to a discussion on SYQT's earnings announcement. << >> Where did everyone go? << They're over on the Iomega thread! <G> techstocks.com I'll be back later tonight to give my typically bearish perspective. ;) But (like you), I was hoping to see some discussion by now. Maybe nobody knows that the earnings are out yet--I know that I certainly didn't expect them this early! - Michael Coley - i1.net

To: Fred J. Ledo who wrote (4565)	10/30/1997 7:00:00 PM
From: Kenneth Yeh	Read Replies (3) \| Respond to of 7685

Syquest earnings were very disappointing... Syquest achieved an earnings loss of 54 cents per share which is extremely poor. It was also mentioned in the earnings report that SYQT has 68.3 million shares outstanding as of Oct 17, 1997. This company issued over 8 million shares of their stock in less than 3 weeks since the number of outstanding shares as of Sept 30, 1997 was 59.9 million. By issuing such large numbers of shares, the shares become diluted and the value of each share drops. In addition, the company states that it does NOT expect to become profitable next quarter. Syquest does not expect profits in Q1 FREMONT, Calif., Oct 30 (Reuters) - Syquest Technology Inc said it plans to continue investing in sales and marketing and does not expect to return to profitability in its first fiscal quarter, ending December 31. I am fully aware of the high expectations of their "Rocket" technology which will be introduced at Comdex. However, I honestly do not feel this company is worth the $4+ a share value that it is now. If SYQT continues to dilute their stock like they have done recently, their stock will become worthless. They state that they will continue to lose money next quarter. Yes, they have a new product, but how long will it be before they can start becoming profitable? Does the number of shares they issue to pay off their debts justify the $4+ a share they're at now? How much of a profit margin can they expect from the Rocket...will they sell enough to pay off their Advertising, Marketing, and R&D expenses? Will shareholders be able to profit from this company in the long term? SYQT's future doesn't look very bright at this point... -Kenneth