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Non-Tech : Any info about Iomega (IOM)?
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To: gary widdison who wrote (3432)6/25/1996 12:46:00 PM
From: Matthew Shaun Koch   of 58324
 
Gary:

The Zip and it's disks are proprietary. That means IOMG has no competition in producing
Zip drives. If the Zip becomes the standard they will be shielded by their various patents
for years to come. Iomega has been very careful in the design of their
products and the patents they have issued (i.e., design patents on the disks for the Zip drive).
Any company thinking of submarining Iomega on the drives or disks faces
almost certain litigation.

You mention strong-arming by OEMs when it comes to big orders (good point, Soundblaster almost went bankrupt
because of low-margin deals with OEMs). Iomega has taken the Zip to the consumer first. If consumers want
it bad enough then the OEMs will pay for it. Case in point is Gateway. Gateway is notorious for being cheap
with their vendors. Iomega Corp. has alot of bargaining power right now because of the retail success of the
Zip and can't be strong-armed by Gateway (I talked to Gateway staff at Comdex about this). They will come around.
In any case, the drives are only part of the story. The disks are where the margins are and again
Iomega has proprietary rights for years to come.

P.S. For the fear mongering shorts. You can't scare me off this stock with your
hyperbole and calumny. I bought on fundamentals and will sell on them.
The only thing that has changed in the last month is the stock price and some
nice agreements with some major companies. Feedback on those fundamentals will
arrive during the week of July 15. I wager that I am sleeping better than you are.
Long term, the price of a stock is almost perfectly correlated with earnings. All
your B.S. can't change that.
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