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

To: Richard James who wrote (6390)	5/14/1998 8:31:00 PM
From: John T. Hardee	Read Replies (1) \| Respond to of 7685

News- biz.yahoo.com

To: Richard James who wrote (6390)	5/14/1998 10:57:00 PM
From: Michael Coley	Read Replies (1) \| Respond to of 7685

RE: Cash Source for SyQuest Richard, >> wonder if you have factored in another cash source: product sales. << Unfortunately, product sales has had the opposite effect on cash for six of the past ten quarters. With the low price of SparQ and based on comments in their conference calls, I don't think SparQ will bring in break-even or positive gross margins until they double their production and sales. >> Should financing be required, wouldn't you expect more favorable terms? << The terms couldn't get much worse. Take a look through some of their SEC filings and see the high interest rates, fees, and conditions of their current revolving loan. Plus, take a look at the current balance of the loan. It's maxed out. >> BTW, were you finally able to find a broker to let you short syqt? << Unfortunately not. I would be less inclined to short at this level, anyway. The chances of a bounce from $2 to $3 are considerably better than I felt the chances 2 weeks ago were of going from $3 to $4. I still think the downside potential is easily $1 or lower. - Michael Coley - wwol.com