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

To: Maher Sid-Ahmed who wrote (6831)	7/8/1998 7:06:00 PM
From: Rocky Reid	Read Replies (2) \| Respond to of 7685

>>A drop in price to $1 1/8 or even less than a dollar does not signal bankruptcy. << True in itself, but Syquest relies on share dilution to stay afloat. A share price below a certain level will not be convertible. Thus, no more cash for operations. >>There are many companies that dropped even lower than a $1 and now are trading at above $10. << Yes, but for every one of those (GMGC, AAPL,NCSP,etc) are hundreds more that never see light again. Besides, each example you gave is in a completely different industry than Syquest. Syquest manufactures hardware that is having to fight a bigger better-financed (barely, these days) competitor in Iomega. But more importantly, is having to fight against non-proprietary competitors in CD-R/W. Margins in the storage category are getting lower and lower, and there is no reason why this trend won't continue. Castlewood Orb is coming out soon (priced lower than SparQ with more than twice as much capacity), and so is DVD-RAM. Once DVD-RAM comes out ( before this Christmas), CD Burners will get obscenely low in price. The media is already almost free in price (after rebates). A proprietary format has a very hard time fighting these facts, as Iomega is finding out. And Syquest will be the first major casualty of the war.