To All:
Iomega is down on heavy action 16 1/8 but holding. If you'll look
back at my posts #5673, #0(Iomega Alert) i posted some MM activity.
Well since tomorrow is expiration i think everyone now realizes that
my MM info was absolutely true. In post #5673 one of IO MM purchased
Aug 20 puts for 2 7/16($146,000).
Today those same puts are worth 3 7/8 ($232,500). An easy $86,500
was made at our expense. A friend called and told me the MM were
whipsawing IO around to hit targeted price points. IO will probably
continue to see volatility till expiration.
Looking at the open interest for Sept
Call
Sep 15 -682
Sep 17.5 -2414
Sep 20 -4894
Sep 22.5 -1778
Sep 25 -1897
Sep 30 -877
Put
Sep 15 -979
Sep 17.5 -1005
Sep 20 -796
Sep 22.5 -60
Sep 30 -21
I compiled the data a couple of days ago but looking at the open
interest IO will probably trade in a range *below 20 and somewhere above 17.5* for the next month.
Ofcourse this isn't the holy grail but since volatility has been
drying up for IO the MM's have to resort to playing the options dart
contest, rigging IO's price to hit option price targets.
On the Syquest demise, lets not get to premature with Syquests destruction just yet. Overoptimism usually costs us dough. But in saying this i think its critical for IO shareholders what happens
to Syquest.
1996 / 1995
Revenues $29,459,000 $68,787,000
Net Income (41,317,000) 1,711,000
EPS (3.16) .15
Nine Months
Revs $155,571,000 211,169,000
NI (126,000,000) 7,320,0000
Im sure most of these lower Revs came from IO. But how much more of them can we expect. What will Syqt owners do once they figure out
they own Betamax. IMO, i think Syqt has two options, Fold or Sell.
They fold it would be worth at least a couple of bucks a share
or more to us.
Now, if Storage Tech,Western Digital, Quantum or Samsung purchase Syquest i think it could cost us a least a couple of bucks. Samsung
has been know to scoop up ailing US tech companies ie Ast etc.0
An associate told me Wells Fargo has been pulling back on their Syquest exposure. Syquest will need tons of money for ramp up for the
Syqt 230 and Syjet drives *where will they get this money from*?
The Arbs are fishing around Syquest to see if they can smell a deal.
I dont know though.
WHATA THINK
THE WIZ |
