SI
SI
discoversearch

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 : Any info about Iomega (IOM)?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Greg Schmalhofer who wrote (2282)5/31/1996 11:28:00 PM
From: Terry H.   of 58324
 
Greg,

On an offering like this you want to stick with the prospectus. The standard proceedure is to say a lot of negative possibilities (put in by the lawyers) in the prospectus in order to cover themselves. Of course, these are all real risks and read without the benefit of the positive implications which management presents on the roadshow, you would never buy the stock. Put your negative potential in writing in the prospectus and verbally discount it on the road show to the buyers and let the underwriters and their brokers counter it. That's the technique thats used.

Example (not necessarily in this prospectus)

Prospectus says: "IBM has the capability and could become a significant competitor of the company's ZIP drive."

Broker says verbally but without confirmation in writing: "Of course, you know that that rarely happens. It takes a fast reaction small company, like Iomega, to bring a creative product like this to market in a timely manner."

I don't think information on material changes in the company can be held back from the stockholders, even during this period. If they did, they would be open to a lot of lawsuits. However, this doesn't mean that they can't orchestrate their PR, for a runup of the stock after the secondary is done. Then, everyone is happy if the runup sticks.

Anyone have other opinions or additional insights?

Terry H.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News