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

To: hankiba who wrote (6103)	4/8/1998 9:15:00 AM
From: Michael Coley	Read Replies (1) \| Respond to of 7685

RE: Shallow Arguments. Can you back up any of your statements? Many appear to be erroneous: >> leading Jaz sales 2-1 << This is certainly not reflected in the channels I check. It appears to be AT LEAST 2-1 Jaz over SparQ, and considerably more in some channels. The $100 price cut in Jaz (and the introduction of the new Jaz2) appears to be working wonders (at least in the Jaz line) for Iomega. >> clear focus of product << And just what is that focus? Low-end? Power-user? Low-end still prefers Zip (because it's cheaper). Power-user still prefers SyJet or Jaz (because they are SCSI). >> 1 gig product with ramp of 25,000 units to 175,000 to 300,000 Sparq sequentially << Are you talking future ramp? I think it was 38,000 in Q1. I'll agree that 175,000 is reasonable in Q2. 300,000 in Q3 is yet to be seen. (Am I reading you wrong here?) >> This is what has come from the $200 million infusion that you refer to as dilution. << So for a $200 million "investment", they've sold less than 250,000 drives. At $200 each, that's only $50 million. >> Compare Syqt & Iom on P/S basis, then you see that the dilution argument is hollow. << I have. I'm glad to see that you're looking at P/S ratios for SYQT. I think it's the most valid way to value companies like this. See message #reply-3559190. I had one with a table of SYQT's market caps over the years, too, but can't find it. IOM: Revenues $1.74 Billion, Market Cap $1.7 Billion. P/S Ratio 0.98. SYQT: Revenues $107 Million, Market Cap $216 Million. P/S Ratio 2.02. >> Iomega & Syqt will cross price within 5 months. << Stranger things have happened. I guess we'll see in five months. - Michael Coley - wwol.com