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

To: Chi-X who wrote (4638)	11/3/1997 11:28:00 AM
From: RagTimeBand	Read Replies (1) \| Respond to of 7685

Chi-X >>"There shall be no wine, before its time."<< A couple of months ago when SYQT was in the high ones - low twos I would have settled for Ripple. ;-) Regards - Emory

To: Chi-X who wrote (4638)	11/3/1997 11:36:00 AM
From: Dale Stempson	Respond to of 7685

Re: >>>This product should take out both Iomega's Jaz & Zip drive. Sounds like the Iomega killer to me.<<< Chi-X, Here's a recent quote from one of the EdHeads that touches on your comment: "When prodded further, chairman Ed Marinaro reveals where Syquest sees its greatest opportunity. "We wouldn't be here if Iomega had done their job with the Jaz," he admits. The strategy, then, is to broaden the hard drive replacement market and take the lead in connecting Syquest as the leader there. The floppy alternative segment dominated by Iomega's Zip, of course, provides opportunity but it is too late to lead that market, and recent price pressures from cartridge copy-cats lessen the lucrative draw of a razor-blade strategy, Marinaro says." Full text at: marketingcomputers.com It appears even Ed agrees that they won't "take out" the Zip. Regards - Dale

To: Chi-X who wrote (4638)	11/3/1997 6:26:00 PM
From: Cogito	Respond to of 7685

>>This product should take out both Iomega's Jaz & Zip drive. Sounds like the Iomega killer to me. The only thing I can see Iomega doing is lowering prices thus killing their margins.<< Chi - While it certainly will affect Jaz, I can't see SparQ being much of a threat to Zip, which is already being sold profitably at 99 dollars. As for lowering prices and reducing margins, you should note that Iomega's gross margins are over 30% at this time, whereas SyQuest's are below 3. Plus, Iomega has plenty of cash, and positive cash flow. In a price war, who would you pick to win? - Allen