Any info about Iomega (IOM)? Message Board

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

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To: sheila rothstein who wrote (47188)	2/8/1998 12:22:00 PM
From: Neil Kalton	of 58324

Sheila, After reading the CC transcript and the numerous posts on this thread I still don't see how Kim Edwards made a big blunder. IMO, he was forthright and honest about IOM's strategy for the upcoming year. He conveyed both the positive potentials and the risks inherent with such a strategy. What more, as investors, do we want besides honesty from our CEO's. I would rather have a CEO who is forthright than have one who is a cheerleader always trying to hype the company in an effort to "enhance shareholder value". KE laid the cards squarely on the table. If you don't believe in the strategy then sell, if you're like me and think it is a well calculated risk then hold on. If the strategy works then the share price will take care of itself eventually. As Peter Lynch said, it often took his stocks 2 or 3 years after buying before they behaved in the manner he had expected them to. IMO, the only people who committed any blunders were the ones who sold at $8. That low share price was a classic example of how the financial markets can often be inefficient in the short term. The savvy investors capitalize on such short term inefficiencies (witness ORCL at $18). Unless you're a short term player there is no need for KE to issue any statements about the co. While the markets may display short term inefficiencies they are always efficient in the long run, i.e., if IOM executes its strategy and increases profitability then the share price will take care of itself. IMO, Iomega has adopted a strategy which conveys the company's desire to be around for some time to come. With each commercial that plays to millions of people Iomega is increasing its brand awareness. Sure, the increased advertising may stunt profit growth over the next year (which KE told us about) but it may work wonders to ensure IOM's longer term viability. As long as the fundamental story remains in tact I plan on being patient and being around to reap these rewards. -nk (BTW, you shouldn't have to defend yourself by posting your investment returns)

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