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

To: Dale Stempson who wrote (6818)	7/8/1998 10:43:00 AM
From: Fred J. Ledo	Respond to of 7685

<This is exactly the type of "fear" I was talking about.>> Yes, this fear is being reflected in the stock price. Who was it that was recently wondering why someone invested in IOM would care what happens to SYQT? Intereting how its all tying together... Fred

To: Dale Stempson who wrote (6818)	7/8/1998 4:04:00 PM
From: Troy Shaw	Read Replies (2) \| Respond to of 7685

Dale, I still want to know where SyQuest's future financing is coming from. SyQuest filed an S-3 stating that they had sold (in the past) preferred stock that could convert into 44M common worth about $63M. With today's stock price, those 44M convertable shares (estimated) have now grown to over 60M (assuming a significant number haven't been converted recently.) SyQuest had 60M shares above the 44M with which to raise cash, when they filed the S-3. So, chop 16M off of that, because of the decline in the share price. What happens to the stock price if significant volumes of the "44M" do begin to convert? If the stock drops to somewhere around 60-70 cents SyQuest can no longer convert the shares, because they are only authorized for 240M shares total. Currently SyQuest's market cap is what... 100M+? Now add 50% more shares keeping the market cap the same, you get a share price around 74 cents, but the kicker is that as the share price drops the number of shares hitting the market go up. I'm sure I'm over simplifying this, and I'm probably missing some real significant points, but it looks to me like a serious if not lethal problem. SyQuest's life blood is their market cap. If it continues to drop they are cooked. I wouldn't be surprised by a reverse split some time in the not to distant future, to make it easier to extract money from their cap. What do we know about cost of production of SparQ?