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

To: Angel Medina who wrote (6310)	4/30/1998 3:19:00 AM
From: Gary Wisdom	Respond to of 7685

Re: <<nvestment Bankers do not through millions of dollars at companies unless they think the company involved has a winning product with great possibilities.>> Sorry to burst your bubble Angel, but the guys "investing" in Syquest are not investment bankers. They are sleazy types that are buying Syquest stock at a greatly discounted rate and selling them @ $3 to retail investors. As a banker, I would guess you can read financial statements. Take my advice: read them.

To: Angel Medina who wrote (6310)	4/30/1998 3:57:00 AM
From: Michael Coley	Read Replies (2) \| Respond to of 7685

RE: Don't kid yourself! Angel, Don't kid YOURSELF... The venture capitalists wouldn't have sunk millions of dollars into a company as insolvent as SYQT if they didn't think they would make money on their investment even if SyQuest goes out of business. Who do you think is doing the shorting when SYQT pops its head above $3? It's the venture capitalists, locking in their profits. Notice that the short interest dropped when the warrant holders exercised some of their warrants. THEY were the shorts. - Michael Coley - wwol.com

To: Angel Medina who wrote (6310)	4/30/1998 1:20:00 PM
From: FuzzFace	Read Replies (1) \| Respond to of 7685

Angel, If Series 3 is a "death spiral" convertible, you should know it before getting in SYQT. If you want to see what one looks like, check CMYN, a gold mining company, that was pushed past the "Schwartzchild radius" by the decline of gold prices last year. While almost every other gold stock has rebounded significantly, CMYN just spiralled in. I lost a chunk of change in it, and sure wish someone had pointed out the "death spiral" clause in one of the SEC filings. It is usually buried under a mountain of legal mumbo-jumbo. Even if Series 3 is not a "death spiral" convertible, just look at the sheer number of preferred series: 7. They have come back to the well 7 times because they can't get conventional financing. This stock has gone from 11.5 M shares on 9/30/96 to 94.6M shares on 04/27/98, without splitting. And if all current warrants are exercised the total will be over 163M. That alone is enough to scare any sensible person. But the continuing dilution will almost certainly put the float at the authorized limit by the end of the year. That is why they must authorize more at the shareholders meeting. The number 300 million comes to mind.