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

To: Gary Wisdom who wrote (7355)	10/27/1998 9:18:00 PM
From: David W. Taylor	Read Replies (1) \| Respond to of 7685

>> Unless the Company is able to obtain sufficient financing or secure a strategic alliance, the Company will not be able to continue funding its operations. >> So the last couple of days have simply been the merciless milking of the greedy by the few in the know. You can fool some of the people all of the time.... Sad really...

To: Gary Wisdom who wrote (7355)	10/28/1998 9:42:00 AM
From: Dale Stempson	Respond to of 7685

The EdHeads are in deep trouble It is clear to me from the 8-K that SyQuest is in their final fight to stay alive. Their survival hopes will quickly deteriorate by the hour as a result of exhausting their last financial resources. Geez, they've already had to "cut back or discontinue certain vital business activities, such as marketing, shipping, advertising, production of new inventory, purchase of raw materials, and research and development." I suspect that the A/R departments of SyQuest's suppliers are closely monitoring the situation and reviewing all press releases and SEC filings issued by the company. IMO, the 8-K clearly indicates the high probability of bankruptcy protection. If there were any vendors left who were extending credit, I would expect them to quickly change to COD as a result. Without any cash for components, production could grind to a complete halt in no time. And what happens when it comes time to make payroll this week? Are they going to give employees IOUs? What is perhaps the most important news released in the filing is that the deal with the preferred holders to back a $13 million loan did not go through. SyQuest is now stating: "The transactions have not closed, and it is unlikely that they will close unless the Company is able to secure additional substantial lines of credit or debt financing." I believe most investors thought this was pretty much a done deal, but now it seems a white knight is needed to ride in to Fremont with a sword, a shield and a big bag of cash. Well, back to square one. It also looks like SyQuest is preparing shareholders for the worst with this statement regarding proposals: "Discussions are continuing, but there can be no assurance that they will reach a successful conclusion, or that if successfully concluded they would lead to any benefits to existing or potential shareholders." With their backs against the wall, it appears possible that the EdHeads might accept a proposal as an alternative to bankruptcy. As some have suggested, this may leave shareholders holding the bag where existing debt and common shares both vaporize. In any case, the entire situation is the ugliest I've seen, and I'd expect that something must happen very quickly, one way or another. One thing is for certain, I will not even trade SYQT now. News could come out at any moment and I wouldn't risk holding any shares, even if it were only for a brief moment during the trading day. Good luck to all here, but most important for the hard working employees at SyQuest, I sincerely hope your management can find a way for everyone there to stay employed. I hope I'm wrong about my outlook for the company. Regards - Dale

To: Gary Wisdom who wrote (7355)	10/28/1998 10:28:00 AM
From: Gutterball	Read Replies (1) \| Respond to of 7685

Interesting news on Syquest's financial situation. I believe Syquest isn't finding a buyer because potential buyers know if Syquest goes Chapter 11, which it will if it can't get another round of financing, they can get the company by just assuming its debt which they'd have to do anyway if they bought Syquest out right. The buyer's advantage in letting Syquest seek Ch 11 protection is that they can wipe the slate clean of 230.8 million of common -- that means you and everybody else in SYQT. SYQT may be a great day trade. Considering the pressure on SYQT is downward, it will take a great deal of skill to make any money here.