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Frank: Thanks for the warning, where would we be with out you?
--Does it cross your mind that all the financial markets were down today?
--That todays NASDAQ loss was equivalent to 80-85 points in comparison to the DOW industrials?
--Does it cross you mind that all tech stocks were down today, (most of them at least.) such as IBM, USRX, INTEL, DELL, etc...
--Does it cross your mind that the Cabot news letter may have had some negative effect on any company recommended by this news letter even though it may not have been waranted?
--Does it cross your mind that this has been a bad week so far for all the finnacial market? How many times did any of the big boards close up this week?
--Does the thought that investors are waiting for Friday's employment report (due to previous experiences at the beginning of this year)may be the reason why volume is light?
--Could it be that today's strong retail sales, some retailers reporting double digit growth, had something to do with an overheating economy. Thus leading to higher employment report on Friday, inflation on the rise, tightening of the monetary policy by the Fed. Thus raising the cost of capital and the cost of doing business for many compnanies, including Iomega?
These are all factors that nobody addresses on this forum. Factors that may very well effect Iomega and the rest of the finnacial markets. Day to day price fluctuations and the I told you so are meaningless. What investor could not have seen this coming, given what has happend in the last three weeks (short squeeze, stock split, Acer announcement, 2nd Acer announcemet, WSJ article, Barron's article, secondary offering, mood of the market.)
Frank, the question is: Has any of the fundementals changed?
I admit that Iomega may be overvalued despite the awsome potential down the road. I think this stock will hover around 35-40 for some time regardless of major news announcements. The reason being is that I think many will want to see the company get ahead of the stock price, instead of the other way around (now being the case), before putting major money into the compnay, especially with all the negative publicity srrounding tech stocks. Furthermore, the momentum in the stock market has fizzeled, which I think is the beginning of the end of this bull market. IT'S NOT ONLY IOMEGA THAT HAS LOST ITS MOMENTUM, IT'S THE TECH SECTOR AS A WHOLE.
In summary, your prediction was no different than calling the psychic friends hotline. "THIS BUBBLE HAS POPPED", give me a break. Do you really think that a one dollar decline in Iomega's stock price, a bursting of the bubble? In my opinion, if the stock had lost about six dollars or more today, then I would agree with you. However, a one dollar loss, especially when one condisers the overall finnancial enviornment, given the mood of the investors, is hardly a call for celebration that IOMEGA'S BUBBLE HAS POPPED. Iomega held up it's ground and showed it's strength in a very negative market, contrary to your predictions
Fouad |
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