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

To: Tadsamillionaire who wrote (7394)	10/31/1998 7:11:00 PM
From: Philip J. Davis	Read Replies (1) \| Respond to of 7685

Tim, >>My only question is ...... how short are you?<< Not a single share. I doubt any brokerage would allow anyone to short a stock with a share price under $5 since one can only short in a margin account, and we all know that one can't margin a less than $5 stock. I never imagined that simply asking a legitimate question would necessitate a "short" accusation. Speaking of due diligence, one other question: have you taken the time to read SyQuest's latest 8K? If not, here's the relevant link and some notable quotes: edgar-online.com >>As of September 30, 1998, the Company was not in compliance with the financial covenants contained in its loan agreement with Greyrock Business Credit ("GBC"), the Company's asset-based lender. GBC waived the default, but reduced the Company's credit line from $30 million to $10.75 million. Currently, the Company has no availability under its reduced credit line for additional borrowing and no other credit lines or sources of significant debt financing. The Company is seeking additional financing from another source, but there can be no assurance that such financing will be available. The Company has been obliged from time to time 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.<< >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.<< Please do yourself a favor and consider carefully what this means to SyQuest's immediate ability to continue as a going concern. regards, Philip

To: Tadsamillionaire who wrote (7394)	11/1/1998 8:06:00 PM
From: Cogito	Respond to of 7685

Tim - Re: SyQuest's "World Leader" status Many articles in trade magazines are basically slightly altered press releases. The press releases, in turn, are put out by the companies themselves. SyQuest, in every one of its own press releases, says "SyQuest Technology, Inc. is the leader in cartridge hard drive storage technology." It's difficult to say who's the leader in the technology, but if SyQuest management wants to claim the position, no one can stop them. If you go back to the 80's, when removable cartridge disk drives hit the market, you will find both Iomega, with its Bernoulli Box products, and SyQuest. I really don't know which came first. I don't think SyQuest can claim to be a market leader, though, since they have been playing catch-up to Iomega for the last three years. Over that period SyQuest sales have been less than a tenth of Iomega's. The SyQuest brand name is worth something, certainly. But if you add up all the outstanding shares, then consider their other debts, it's hard to see how any company could come up with a buyout figure that would make current shareholders happy. Even the ones who bought in recently at less than fifty cents a share. - Allen