Jeff,
Yesterday you wrote:
"I suppose you're one of those who thinks everything you read is gospel". What do you think will happen on Q2 announcement day?
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No Jeff, but I do know what drives market price. As you can see by todays closing price, which was down more than $1, you can't bury your head in the sand when you don't agree with someones opinion. If you have been paying attention, you will have noticed that OEM hype is not moving the price, however, negative news is draging it down.
Regarding your "Q2 announcement day" question, I think IOMG will have sales which equal their manufacturing capability. Just because the demand may be for say 500,000,000 drives doesn't mean they are capable of manufacturing enough to meet demand. I predict that IOMG isn't capable of manufacturing many more than they manufactured in the previous quarter since they haven't added new capacity since then.
Therefore, Jeff, I don't expect IOMG to "blow the street away" as you do. The hype is already too high for there to be any surprises. Iomegans need to learn how to downplay expectations if you want any upside surprises.
If you are waiting to see a jump in price, it won't happen until the stock price corrects more to the downside. It is obvious that the ceiling for last week was 40. If it closes below 35 you had better protect your profits because this is the base. It wasn't by accident that 5,000,000 shares sold to institutional investors for $35/share while you and I had to pay $42/per share on the same day.
In my opinion, Iomega screwed its shareholders when they allowed that 5,000,000 share dilution to occur at $35/share.
Regards,
Frank
P.S.-If you read their filing with the SEC you will find out that it was actually a 5,750,000 share dilution. |
