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


To: Michael Coley who wrote (4636)11/3/1997 10:47:00 AM
From: Triluminary  Respond to of 7685
 
RE: SparQ...

Surprised and impressed. Congrats to all the longs. My guess is margins on the SparQ are probably razor thin and I'd still like to see reliability tests, but this is definitely a start in the right direction.

Again congrats.

Regards,

mark_b



To: Michael Coley who wrote (4636)11/3/1997 11:26:00 AM
From: RagTimeBand  Read Replies (2) | Respond to of 7685
 
Michael

>>What kind of volume will it take for SyQuest to make a profit on this drive,...<<

Maybe they're going to use the approach HP does with printers. Sell the printer at cost and make the money on the cartridges.

>>...and can they afford to ramp up to that volume?<<

A couple of options:
joint venture
issue stock for cash
be taken over (possiblities might be Western Digital or Segate)

Regards - Emory



To: Michael Coley who wrote (4636)11/3/1997 11:52:00 AM
From: Dale Stempson  Respond to of 7685
 
Re: >>>But can they make a profit on it?<<<

Michael, That's certainly the question of the day. I wonder if Syquest has the disks protected by patents. Perhaps instead they've already licensed the disks to Nomai. Licensing would reduce margins but would guarantee a piece of each disk sale while helping Syquest to more easily ramp-up.

Regards - Dale