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

To: Stephen Leung who wrote (5179)	1/4/1998 12:35:00 PM
From: Dale Stempson	Respond to of 7685

Re: Zack's The one analyst now with a strong buy must be Howard Rosencrans from HD Brous & Co. I believe he had SYQT as a "speculative buy" previously and is the only one I know of who has been recently bullish on the stock. In addition, it appears the Zack's report was recently updated as of 12/29/97. It's interesting to see an upward revision at this point in time. Perhaps there's something positive in the air. More interesting to me are the estimated EPS numbers. They make no sense to me at all. Let me illustrate: -1.01 (loss) EPS estimate for this year ending Sep-98 +1.85 (gain) EPS estimate for next year ending Sep-99 In the range from the current 71,721,583 shares outstanding to the 153,000,000 shares accounted for, resulting net earnings would be: 1998 - Loss between ($72) million to ($154) million 1999 - Gain between $132 million to $283 million Now, to predict sales from their numbers, we have to select a Net Profit Margin percentage. Let's give them the benefit of the doubt and say they could get the number back up to the 4% range. Gross Sales for next year would then look like this: $3.3 Billion (with no increase in shares outstanding from today) $7.1 Billion (with increase to 153 million shares outstanding) Now while I certainly believe it's possible that Syquest can remain in business and eventually turn a profit, I find it virtually impossible to believe they could get their sales up to these levels. Seeing numbers like these from analysts reinforces the importance of doing your homework before investing. This is a joke. Regards - Dale