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

To: Dale Stempson who wrote (5503)	2/12/1998 10:51:00 AM
From: Joe Reich	Read Replies (2) \| Respond to of 7685

Hi Dale/Bipin - Been awhile. Lot's of new names around these days. I have yet to go back into SYQT. Sold the last of my extensive holdings at $5 during the last big run-up. I went completely negative on Syquest when they once again screwed their customer base by basically obsoleting the very recent Syjet purchasers with the SparQ, which could have been made compatible (same cartridge footprint), but chose not to. Hence SparQ customers get to buy cartridges at about .03 per MB, while Syjet users, pay 50% more or about .045 per MB. Did the same thing to their EZ135 purchasers. They seem to have a long history of abandoning previous customers. That's why they're having difficulty establishing a dependable customer base. It's not the technology, which is brilliant, it's the customer support, which is deplorable. BTW, they still never fixed any of the problems in the Syjet line. I expect to see SYQT follow the PNCL death spiral over the next 12 months. Don't buy above $1! Regards, Joe

To: Dale Stempson who wrote (5503)	2/12/1998 10:52:00 AM
From: JeffM	Read Replies (5) \| Respond to of 7685

Dale, I was on the call yesterday. Management stated a few interesting points: a) They sold just under 40,000 SparQs last quarter; b) They have already sold that many SparQs this quarter; c) Capacity will begin to ramp up sharply in March; d) There is currently one week of SparQ inventory in the channel, when they would prefer it to be at 4 weeks; e) They will need more funding, to come from warrant conversion, private placements and bank line extensions. They danced around the gross margin question a number of times by reiterating that SparQ needs to be a high volume product (= low margin?). The call was surprisingly upbeat from the investor side, and there was a lot of institutional interest. In any case, I think that Ed and Ed know what they are doing but I am concerned that they won't disclose any profitability scenarios for the SparQ. It is a swing for the fences situation.

To: Dale Stempson who wrote (5503)	2/12/1998 12:25:00 PM
From: xclently	Respond to of 7685

Well, just yesterday I was amazed to see SYQT above the $3 level. Once I looked at the most recent financials, I am dazed and confused. I admire dedication and the Spar Q advertising campaign has been impressive, but how long can management continue to disappoint and fail to meet there own publicly stated goals? If anyone can answer this satisfactorily, than it might be a good time to cost average. Otherwise, be wary of the continued flood of new shares, the increased costs of the advertising, and the risk/reward ratio considering the rapidly changing pace of technological innovation. Peter P.S. Always be prepared to alter your technique when fishing in the changing tide of our lives!