Any info about Iomega (IOM)? Message Board

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Non-Tech : Any info about Iomega (IOM)?

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To: Joe Rizzo who wrote (2684)	6/9/1996 6:43:00 PM
From: Rich Benjamin	of 58324

Joe, I always thought the price of stock was determined by supply and demand. Isn't supply and demand determined by future expectations? If you try to gage the price of this stock based on the logic of the current numbers you will only lose your shorts. Institutions were willing to invest at $35 per a share. Do you think they invested based on momentum? Maybe there are some things happening that we don't know about. Everytime good news comes out demand will be increased and supply decreased. This will result in the price running up. The only bad news that has come out so far is that the demand for this stock is too high resulting in the price moving very quickly upward. I guess this stock has the same problem as the Zip and Jazz drives. Too much demand. In regards to price drop decreasing margins, I haven't seen the price drop yet. Based on the quality management Iomega has, I don't think they will drop the price without having the capacity to fullfil the increased orders it will create. If they can sell all of their drives at the current price, they will need to add additional capacity to insure they don't lose revenue by decreasing their price. Can we agree that this is probably where most of the $175 million raised from the secondary is going? One more note, Iomega's management is smart in regards to corporate communications. I wouldn't be suprised if the 8 million number is their goal. 5 million keeps the expectations low and helps to keep the price moving up when they beat it. Any shorters of Iomega are dealing with management that is extremely experienced and professional corporate wise. Compare this with Oak Technology's management who is going to be sued for being idiots. I'll be long on Iomega for a long time. How long will you be short?

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