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

To: Angel Medina who wrote (6322)	4/30/1998 6:21:00 PM
From: Maher Sid-Ahmed	Respond to of 7685

Please do not lose sight of the fact that there are plenty of respectable institutional holders of this company. Read post: techstocks.com I think there are many (facts) presented regarding this company by those who are taking a bearish stand. However, I still believe that this is a speculative buy and no one should place all his/her bets on one single stock. As far as return on investment I think SYQT presents a better NT potential than IOM, but then I could be wrong. If you like better odds in the drive industry look at: SEG, QNTM, WDC and RDRT. Maher

To: Angel Medina who wrote (6322)	5/1/1998 12:51:00 PM
From: Michael Coley	Read Replies (1) \| Respond to of 7685

RE: Who is buying? Angel, >> Who is buying the over two million shares traded almost every day? Either there are many many suckers like I am, or some institutions are also getting their feet wet. << Judging by the block sizes, it's mostly individuals. There are many people out there who think that a stock priced under $3 is "cheap". They make speculative buys without doing the research. >> Also why do the shorts choose three dollars and not 2 1/2 to lock their profits. I would assume that if they got the stock for one penny or for free, 2 1/2 is not a bad price. << I think that you're a little confused about what's going on. There are several things happening here, IMHO: 1) Warrant holders have no stake in the company (at least not for the warrants...). Consider them to be options with a 5 or 10 year expiration date and a $2.85 strike price, which were given out for free. At any point in the next several years, they can pay $2.85 and get a share of SYQT. Obviously, when the price gets much over that (and if they aren't convinced that SyQuest will survive), they will be exercising and selling. 2) Some warrant holders were given EXTRA warrants with a strike price of essentially $0. This was in return for them exercising their existing warrants. These holders can exercise at any time to make a profit. 3) Preferred shareholders get dividends and can later convert their stock to common stock. In order to get the best of both worlds, the ideal situation is to hold the preferred as long as possible and hedge the investment by shorting common. For instance, if I own $1 million in preferred stock and short $1 million in common stock, I am out no cash and am still getting $60,000 per year in dividends. And if they were able to short above their exercise price, it's even better. And if SyQuest drops in half, their short is only worth $500,000 while their preferred is still worth $1 million. (They have a sliding conversion scale with a cap.) It's really a good deal. At least for the preferred holders and warrant holders. Not that great for holders of the common. - Michael Coley - wwol.com