Any info about Iomega (IOM)? Message Board

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

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To: Guy Gordon who wrote (2890)	6/13/1996 7:15:00 AM
From: Joe Rizzo	of 58324

Guy, I think another reason the stock is having trouble holding its gains is simply the multi-billion dollar valuation. I believe it has traded as high as it will based on strategic coups. The company now has to deliver the goods. Seperately, any thoughts on why inventories only grew slightly and Raw materials actually declined in the March quarter from December? Further why did Accounts Payable grow by such a small amount? These accounts usually increase prior to huge increases in revenues. Maybe it has to do with the third party manufacturing arrangements. Finally, can anyone think of other company's that do not manufacture their own goods which have net margins in excess of 10%. I am a little suspect of Iomega's business model. I understand the need to make the zip a standard, but it seems to me they will never make much money on drives competing against major conglomerates, especially since companies like Epson are not at all controlled by Iomega. Does anyone know the arrangements with regard to contracting out disk production? Can Iomega bring it all in house when it has the capacity? Or did it sell its soul in disks the way it did in drives when it faced a cash crunch?

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