Iomega Thread without Iomega Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Iomega Thread without Iomega

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Reseller who wrote (6826)	7/6/1999 12:58:00 PM
From: Rocky Reid	of 10072

We now have a confirmed business strategy pattern for Iomega. Proprietary Retail------>OEM-------->Commodity (high margin)--------(low margin)---(lowest margin) Iomega's only money-making product line, the Zip, went from a complete proprietary retail sales-driven strategy to a lower (even negative) margin OEM strategy. Now with the CD-RW, we have Iomega now making the transition (4 years too late) to CD technology, a pure-commodity, low margin business. During this time, IOM stock has dropped from a high of $28 to its present day $4 and change. Anyone see a pattern here? And when Iomega completes the transition to pure-commodity by killing its Zip sales with the Iomega CD-RW, the stock will further reflect this new Survival Level product strategy. That is to say, IOM will trade around Book Value. IOM Book Value (after charges) = about $1.20 per share

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next