Hi Janet,
Here is something from Bill Bronsteen on the Motley Fool. I think it addresses your concern about a short conspiracy. I hope Bill will not object to my posting it here:
Subj: Weekend at Bernie's
Date: 96-06-17 14:39:49 EDT
From: Cynicalguy
I just returned from a weekend of what I thought would be no Fool and no Iomega. Boy was I wrong. I didn't have access to a computer, but what I learned about Iomega and the Motley Fool this weekend was something I could never find in front of my monitor.
This weekend consisted of 2 benefits, one day by a pool and one on the beach. Where I was is only important in relation to who else was there. I met more people involved with Iomega in one way or another all weekend. More at the benefits, but also at the house and on the beach. I had Iomega related conversations with: traders, brokers, money managers, market makers, 3 SEC lawyers (told me nothing juicy at all), regular securities lawyers, financial reporters, and others. What I learned enlightened me, and it should you.
Now I had thought all along that there was a conspiracy involving the shorts and financial writers. (This includes Dorfman, Abelson, etc.) I WAS WRONG. Don't get me wrong, some of the stories we know about were done as favors for the shorts. That was admitted. But only some, not nearly the majority.
So why, do you ask, did we read article after article slamming Iomega? Why do they hate Iomega? They do hate Iomega, but indirectly. I was interested to learn that the Wise hate the Motley Fool. With a passion. Just the fact that I refer to them as the Wise should help us understand their thoughts. I have never seen people speak with such anger as they do when they speak about the Motley Fool, and Tom and Dave especially.
I told these people that if they had met Tom and Dave, they would think they were extremely nice and personable. Nobody wanted to hear it. They went off about how pompous and aloof these guys are. 'Calling us Wise and out of touch--thinking their silly new portfolio can beat a pro, ha' It went on all weekend.
There is no conspiracy. Just a widespread hatred in the Street for the Motley Fool. Somebody seems to fax every Fool portfolio recap every morning to a pool of 'Wise' to keep them pissed off.
And the way the street can take it out on the Motley Fool is to hate Iomega. They consider Iomega to be synonymous with the MF. Hurting Iomega like they did hurts the Motley Fool in their mind.
What do I make of all this? News does move stocks in the short term.
Revenues are what matter long term. Iomega's stock was hurt very badly by the endless press jobs. But people keep buying Zips and Jaz, and the OEMs keep lining up. That is what matters. Also, I seemed to infer that the slamming is over, for these writers feel that they cannot risk their credibility over this issue. I also think that there may be some positive press coming soon.
Hey, I understand why these guys hate the Motley Fool. If I invented a square wheel and everyone bought it due to the fact that there was nothing better, I would be happy. But if somebody invented a round wheel that was better than my square one I would be angry. Point being--the individual investor is now as well connected and the 'Wise' thanks to the Motley Fool. We get conference call passwords, transcripts, etc. The playing field has been leveled. Also, we read the news as it happens, why wait until the next morning or next week now. These guys feel threatened and they should. They also don't like having their faces rubbed in the fact that they are Wise.
GO IO!!!!!!!!!
Cynicalguy
Bill Bronsteen |
