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

To: Jxcxjx who wrote (7462)	11/9/1998 7:17:00 PM
From: Moe B. Loney	Read Replies (2) \| Respond to of 7685

In response to your question, "do shareholders lose their shares when a company goes chapter 11." The answer is, No. They do not lose their shares. Their shares will always follow the SYQT shell. The question is, will the shell be a viable operation or will it be empty. If it is empty then Syquest must find a company to buy the shell. Now, what you need to do is go find a shell that reopened and see what the last closing price was before reopen and determine if there was a reverse split before reopen. I think you will be very unhappy with your findings. I can't think of any good outcomes. You compared Syquest to Boston Market. Big difference in that situation. Look at the amount of stock conversion of both companies. Look at the amounts that were sold at par value. Look at the products and then consider that I could eat at Boston several times a week and enjoy it every time while I would only buy one syquest and be sorry. Also consider that Boston could cut it's non-profitable stores by closing them down and continue with the profitable ones, thereby creating profits that could go towards past debt. Syquest, on the other hand, does not have a chance to drop the losing product line and only sell profitable products. They've got to sell drives at a loss to sell cartridges at a profit and then they don't show an overall profit so they can't pay back debt. That's why they are in the mess they are in. That's whey they could not get any funding from old or new creditors. Just take a look at what Syquest said about themselves: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Adverse market conditions in the personal computer and data storage industries have resulted in lower than anticipated unit shipments and sales prices of the Company's products. As a result, the Company has experienced significant revenue shortfalls, negative cash flow, a lack of liquidity and excess inventory. The Company anticipates continuing losses during its fourth quarter ended September 30, 1998, commensurate with the losses incurred during the first three quarters of its fiscal year. The Company's existing capital resources are insufficient to fund operations through the remainder of its fiscal year ending September 30, 1998. The Company will look to proceeds from the exercise of outstanding warrants or the sale of common or preferred stock or debt securities to fund operations until market conditions improve. The Company has no agreements with investors or potential investors to sell equity or debt securities, however, and there is no assurance that the Company will be able to secure such additional financing. Without such additional funding, there is no assurance that the Company will be able to continue as a going concern. Now consider that the technology that Syquest has is old hat. Things are rapidly changing and that is a fact. Syquest has lost maket share to Iomega and even they are having difficulties. There are new products coming out as we speak. The Castlewood ORB and the Sony Hi-FD. Rewritable CDROMS are also gaining popularity. Figure all of this in and then ask yourself again, "why would any company consider buying the whole syquest company?" I don't think they will. If Syquest has anything of value it will be sold piece by piece and the proceeds will go to the secured creditors of which the common shareholder is NOT one. Syquest will not trade as a whole company again. They are done. Portions of Syquest may be bought by other companies but none will buy the whole company. And you can bet your life that none will buy the outstanding shares...except as an empty shell to do with as they please. Syquest has reached it's end it appears. The dead-cat-bounce was just the insiders and market makers enticing the bottom fishers to buy and the current shareholders to average down. If you're going to make money in the stock market, you've got to learn to play the game. When the dead-cat-bounce came and you bought stock, you should have sold it when the stock turned back. Instead you became starry eyed at all the pumped up lies that game players told you on this thread. Learn to read the charts. They'll tell you the truth every time. Learn from your mistakes. Moe