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Non-Tech : Any info about Iomega (IOM)?
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To: Ken Pomaranski who wrote (56321)6/18/1998 1:08:00 AM
From: Les White   of 58324
 
So what are you trying to say, Ken? That no one at IOM has figured out a profit model for their business when they become standard and are selling 3mil+ drives per month and God nows how many disks?

All of your models? Do those models include cost reductions or do they assume a static cost structure. It seems that your models assume that IOM cannot deliver a profit no matter how many drives and disks they sell.

Tie ratios, tie ratios. Who cares. If you're making any money at all on the drives and over the course of a short period of time you start selling a lot more drives and consequently a lot more disks that you are making money on, at some point your net profits are going to go up even if your tie ratios and net margins go down.

I don't pretend to know where that point is but I'd be willing to bet IOM management does. In fact, I am willing to bet my shares that they do. In fact, David Dunn seems to be willing to bet quite a few shares that he does, also.

And as for analysts. Since when do they announce a buy before their clients have had a chance to load up. Or sell before their clients have had a chance to dump. Are you waiting for the analysts to tell you what to do? It'll be a little late, don't you think?

Les
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