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Non-Tech : Any info about Iomega (IOM)?
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To: HardMoney who wrote (43806)1/18/1998 9:01:00 AM
From: Les White   of 58324
 
RE <<why an extra 130 million shares?>>

Maybe KE plans to buy a DD manufacuter. IOM needs capacity. They're going to have to license out an awfull lot of manufacturing capacity to keep up with demand. The DD sector is overstocked, cheap and getting cheaper. Soon to be ripe for M&A activity.

What drive maker needs to increase capacity more than IOM right now or in the forseeable future? I don't know what the feasabilities of converting a HDD plant over to IOM's needs are but I would think that there is some price that would make it a pretty attractive proposition.

It's just spectulation on my part but if I were a DD maker right now looking for a way out of an overcrowded life boat I'd be praying for someone like IOM to throw me a life line. With an extra load of shares they could easily do an attractive stock swap, gain needed capacity, and keep on truckin.

If IOM owned a HDD manufacurer right now we'd be sitting pretty. We could make all the the cheap HDD's needed to keep the doors open then convert to removable storage drives as needed to satisfy an accellerating demand for the rapidly expanding market for RDD's.

KE has been very strategic in his planning and execution so far. It would not surprise me that he has a very good use lined up for those extra shares. I feel confident that when we all find out we'll be saying "smooth move KE".

Les
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