Any info about Iomega (IOM)? Message Board

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

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To: Michael Coley who wrote ()	12/4/1997 6:42:00 PM
From: D.J.Smyth	Read Replies (2) of 58324

Michael, a reverse split is usually is another opportunity for venture capitalists and inside cronies to short the stock. It reverse splits to a much higher price, obviously, which becomes a much better price from which the original venture capitalists can retain their investment by shorting the stock. Harper must be tounge in cheek when he states he's received hundreds of requests for this action. It is difficult to short a stock at $3, and much easier to short a stock above $10. The reverse splits i've seen have rarely supported shareholders on the long side. The only thing that will support shareholders on the longside for Syquest is improved sales. There is a probability that they're all on the up and up and are reversing in hopes of tightening up the float, but you've got to ask why they issued so many shares in the first place. Syquest should concentrate and disk drive sales and forget about pleasing their cronies, whoever they are. Wouldn't be surprised to see the reverse split take place and Syquest's share price fall by 1/3 or greater after the split which may confirm the naked shorting techniques and puts they're using in order to benefit on the downside. what a wonderful market.

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