Linda, I just went up to the msnbc business video site and was able to replay the comments made by "hedge fund specialist" Mr. Rocker of Rocker Partners and think that you got most of what he said. You can get a replay by going to businessvideo.msnbc.com and looking in the Audio files for 5/09/97 at the 4:10 pm slot. The piece runs a bit over 4 minutes, but as has been commented on, the name IOMEGA is mentioned several times by both Rocker and by the CNBC interviewer... The press loves contraversy... sweeps week you know! But, some of the things mentioned about Internet webpages devoted to negative IOM comments are true. I went through one the other day about Jaz problems and must admit it gave me a bit of concern about whether there was something to the claims of a design flaw that needs to be addressed by IOM. It was also true about the various "takeover" rumors having had their play, whether it was about Seagate, IBM, or Compact... I suspect that there may be some truth in that IOM is in a fantastic growth phase and would be a likely takeover target to some of the Big Guys, which is why I think KE wanted to have the authorization for another 400 million shares in order to fight off a possible hostile bid at some time in the future.
By the way at the above website, you can listen to the recent presentation by KE made to analysts on 5/01/97 using Real Audio player. Even has a picture of him there. Not quite what I had expected, but at least I know what he looks like now. Just do a search at the site for Iomega and it will return this audio file. The trash bit by Rocker didn't show up using the search though as it didn't have Iomega in the title... just something on "hedge funds".
I was hopeful that IOM would have closed above 19, but will have to realize that it has made quite a nice run in recent weeks. Greenspan had his usual "confusing" effects on the Market yesterday. I think that we will see some more upward movement next week and am looking for a move to 21 - 22 by next Friday if the trendline continues. This could bring us into the 24 - 27 range during the next upward move after consolidation in the low 20s. Maybe by mid-June or so.
Sure would be nice to get the laptop Zip out of the starting gate! The potential for this version is excellent! Could really add to the upward momentum of the stock. At some point, shorts will begin to cover and will add to the movement (but I think only after we break 27 or so).
Well thats enough speculation for one post... Best regards, and sometimes its just best to let leave the bait on the hook. :^))
Mel Boreham |
