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

To: Raptech who wrote (6922)	8/3/1998 11:14:00 PM
From: Edward F. deSousa	Respond to of 7685

<<It always amazes me that a company with such a good product can't manage their biz to generate profits.>> It's easy to "successfully" undercut a competitor's product price if a company sells its product below what it costs to make it. If volume production is not that large the problem is even worse on the bottom line. Consumers and magazines may give awards and recommendations based on price/performance, but they don't care or even know whether the product is a viable one from a simple business standpoint. As for the "best value", you must also add into the equation the risk of buying an orphaned product. SparQ doesn't have a great enough installed base to insure that some third party will make cartridges in the future if/when Syquest "goes down the tubes". Then how good is the "value" of the product? How good a value would SparQ be if it was say... $250 retail? It wouldn't be as good a value as it is now or perhaps even the JAZ1, yet it might be what the drive must be priced at to make a successful, profitable product.

To: Raptech who wrote (6922)	8/4/1998 1:22:00 AM
From: Dale Stempson	Read Replies (2) \| Respond to of 7685

RE: "Down the tubes" >>> I have a question for the teckies. I have been shopping for an external drive and Syquest looks to be the best value. What happens to their products if SYQ goes down the tubes? <<< Rap, I wouldn't hesitate buying a SyQuest product because of this for a number of reasons: 1) I really don't believe SyQuest will go bankrupt any time soon. Even if the SparQ falls short of expectations, the EdHeads next step IMO would be to cut back severely and restructure. They should be able to keep the company as a going concern for quite some time to come, although probably a much smaller one. (Hey, these guys haven't pulled out all the stops yet, and then there's always those nice salaries they'll want to protect! <g>) 2) In the event SyQuest were to "go down the tubes," their technology would still be worth something. I think someone would buy it and support at least the SparQ and SyJet for a time. 3) In any case, if you saw the writing on the wall, you could always stock up on enough disks to last you until the next hot product came along. After 3 or 4 years, your old SparQ will seem like a dinosaur anyway and then you'd have a good excuse to give your wife as to why you need to buy that new 3MS 1-1/2" 20GB removable just introduced from... <g> Regards - Dale