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

To: hankiba who wrote (6099)	4/7/1998 3:17:00 PM
From: Dale Stempson	Respond to of 7685

You're correct in that the warrants will eventually provide a significant amount of cash for SyQuest. They will need every penny of it to finance continued ramp-up, marketing, etc. until they can begin to generate cash on their own. Your point is not overlooked, but simply the bottom line is that in projecting future EPS and stock valuation scenarios, the expected increase in shares outstanding should be taken into account. BTW, there is no guarantee as to when the warrants might be converted. SyQuest needs the cash now, and unless we see continued price appreciation or a "special deal" issued, holders just might continue to hold. I believe this situation provides a real incentive for management to perform in the short-term (another reason I like the short-term trading play). Regards - Dale

To: hankiba who wrote (6099)	4/7/1998 7:33:00 PM
From: Michael Coley	Read Replies (1) \| Respond to of 7685

RE: What people forget... Hankiba, >> What people forget to realize is that for each warrant exercised, the company will recieve an average of $2.80 per share. This has the potential to infuse the company with cash. << But what other people forget to realize is that until the losses subside that infusion of cash is leaving just as fast as it is coming in. In the slide from 11 million shares to 80 million shares, they brought in about $200 million in cash. But that just went to offset the $200 million in losses over the same time period. It's all gone. All that remains in the dilution. Until SyQuest increases sales significantly (like 3-5X) and returns to profitability, the dilution (without the benefit of the associated cash) will just continue. - Michael Coley - wwol.com