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

To: Rocky Reid who wrote (5556)	2/16/1998 10:43:00 AM
From: John P. Henrie	Respond to of 7685

RE: "Syquest Now Selling Zip-Compatible discs" Rocky, If Syquests was able to develop a zip compatible disk, it sure would help its present business model. The only improvement in loss per share has been through dilution of shareholder interest. Now with a negative gross margin, its looking pretty scary. I am in banking and when a bank has a negative net interest margin (the financial services industry's "gross margin"), its only a matter of time before they are closed. I thought about my last post and I do not think Syquest will have to worry about cloned discs for a while. The customer base is much to small and the sparq, syjet, and quest are no where close to being the standard. Later and good luck, John

To: Rocky Reid who wrote (5556)	2/16/1998 1:01:00 PM
From: Cogito	Respond to of 7685

>>According to Nomai, Zip discs cost nothing to make, so this high margin product could be just the thing to inject some cash to Syquest's bottom line.<< Rocky - Though Nomai claims their disks cost nothing to make, they are charging 8 bucks apiece for their XHD disks, when purchased in lots of one thousand. Do you still think they are in this because they believe the consumer should have a choice? I should note that I have compared XHD disks to Zip disks, and there's no question that the XHD product is cheaper to make. Since I can buy Zip disks at retail for less than 8 bucks in lots of 6, I don't see why I would buy Nomai's stuff. But I apologize to the thread now, because this discussion has nothing to do with SyQuest's chances to regain profitability. There's little chance that SyQuest will start to sell Zip disks, because they can't afford the machines to make them. - Allen