Any info about Iomega (IOM)? Message Board

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

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To: Janet Kong who wrote (3174)	6/18/1996 3:17:00 PM
From: Erik J. Lupien	of 58324

Janet and all: I would not be so quick to blame shorters. I think, quite simply, that many investors don't monitor their stocks every minute and instead use stop loss orders to protect their earnings. Given that the secondary offering was at $35/sh many investors probably saw that price as the institutional "floor" and therefore put in stop loss orders at $35/sh. That was a dangerous thing for us long term investors today as trading gradually saw the share price drop and finally hit $35. In minute the stop loss orders kicked in and became sell orders. As the market was flooded with sell orders and there we're enough buyers the price dropped. A stop loss order at $35 means if the price is dropping and hits $35 your order to sell kicks in but can really be executed at any price below that as and while the price continues to drop. We should have seen this coming. In retrospect this was textbook stuff. No rocket science here. No voodoo. No short conspiracy. Just simple investors trying to protect their earning with stop loss orders. That's my two cents worth. Until tonight at 4:30 p.m. and beyond ... Regards, Erik.

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