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Non-Tech : Any info about Iomega (IOM)?
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To: slipnsip who wrote (17059)2/25/1997 2:17:00 PM
From: Joel Sternberg   of 58324
 
>Yes it would at least initially appear to be better to not issue anymore shares.

Let me ask you this question, if you were a stock holder, would you
rather have the company finance expansion by issuing bonds at 30%
interest or to do a minor stock offering that say costs them 10%?

Cost of capital. I am comfortable that KE will not do anything that
will be harmful (looking long term) to his own personal position in IOM.<

Good point. You apparently realize that Iomega stock is so overinflated as to provide only an anticipated 10% return to shareholders, where as potential holders would demand 30% to own debt in this dead puppy. Usually debt financing is cheaper, but in the case of Iomega it would be more expensive.
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