Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Troy Shaw who wrote (5526)	2/12/1998 3:39:00 PM
From: Joe Reich	Read Replies (1) \| Respond to of 7685

<<my opinion is that SparQ was a desperation play. I believe it is a SyJet that has some minor modifications including the removal of one head>> If this is correct, it should have been (be) trivial to allow the Syjet to recognize SparQ cartridges... anybody out there ever give it a try???????????????????? Joe

To: Troy Shaw who wrote (5526)	2/12/1998 3:47:00 PM
From: Michael Coley	Respond to of 7685

RE: It Could Hurt Iomega More. >> So, although the SparQ is hurting SyQuest, it could conceivably hurt Iomega more. << I've seen that theory and those words posted here and elsewhere a number of times. For SyQuest's sake, I seriously hope that this theory is an investor perspective and not a "game plan". In order to survive, they need to be concentrating on their own profitability, not on trying to hurt their competition. Iomega has made it very clear that they will not allow SyQuest to determine their pricing action, but will only take pricing action when the demand and cost structures are in place. In the words of B. A. Barakas (The A Team), "I pity the fool!" - Michael Coley - wwol.com

To: Troy Shaw who wrote (5526)	2/12/1998 5:25:00 PM
From: SJSharky	Respond to of 7685

Troy-- Looking at the gross margins, I believe your comment is true. I think they were (and still are) hoping to ramp quickly to ideally create a drive that is capable of sustaining a reasonable gross margin at a $200 price point. At this point, they need to go for broke because they can't dilute the stock much more. And they'll need to cut the exercise prices or offer sweeteners to entice investors to exercise the outstanding warrants. I really think this drive is too good to be true. I wonder what kind of quantities they will need to manufacture (and sell) to produce a reasonable gross margin. --Ryan That's true, but my opinion is that SparQ was a desperation play.

To: Troy Shaw who wrote (5526)	2/12/1998 6:56:00 PM
From: NHP	Read Replies (2) \| Respond to of 7685

>So, although the SparQ is hurting SyQuest, it could conceivably hurt Iomega more.> Troy, I've wondered about this for some time. IMHO the SparQ will be competition mainly for the IOM Zip Drive mainly because there is not that much difference in cost. I own both a Zip Drive and a SparQ. Both are good, but if I owned neither and had to go out and buy one or the other, it would certainly be the SparQ. There is no comparison in performance. Let's assume that Syquest goes belly up. Does that mean the end of the SparQ? I don't think so. Surely, part of the bankruptcy action would include the sale of the SparQ design and production facilities to another competitor. Of course, we don't know what is on the horizon, possibly another device will appear that will offer more value for the dollar than the SparQ. Given the above scenario I don't see how the SparQ can do anything but hurt IOM. Incidentally, I recently received two catalogs that had pictures of the SparQ on the front cover along with the page number to get the specs. Some of the pages had IOM products and the SparQ side-by-side. Again, IMHO the SparQ was a better buy than the Zip, and was a real eye catcher. I realize that IOM is not going to stand still and I have no idea what is on their drawing board. But as things stand now, SparQ should be a problem for IOM, regardless of the bad earnings of Syquest. I am not convinced that Syquest will be losing money on the SparQ drives in the future. It seems to me that the startup costs for the SparQ are already behind Syquest, and now it is a question of how much it costs to fabricate and sell the drives. I wonder if it costs any more to fabricate a SparQ than a Zip? I have a small position in SYQT, none in IOM. I also concede that the arithmetic looks bad for SYQT. NHP