Nomai Threat - Potential Effect?
Glen, Thanks for the info. I read up on Buz, but had not heard anything about RecordIt.
Additionally, read below.
Up & Down Wall Street -4-: Is Nomai A Threat?
Dow Jones News Service via DowVision September 20, 1997
Our old pal and former colleague Charles Biderman, who puts out an excellent investment letter called Market Trim Tabs (we won't even begin to explain what the name means), last week, coincidentally with our and Kate's poking around Iomega, offered his commentary on the company and the fresh competition from Nomai.
Charles zeroed in on the pricing. He confirmed what Kate discovered: Nomai plans to sell its disk at roughly $6. That compares with, he reports, Iomega's price here of $11. Not good news for Iomega, if we might state the obvious.
Especially since, Charles estimates, Zip disks account for some 80% of Iomega's pretax profits. Moreover, he reckons that Iomega has a 50% operating margin on Zip disks, and that its factory price is twice as high as Nomai's. If so, that doesn't bode exactly well for Iomega's profits in a knockdown battle with Nomai.
Even if Iomega were to block Nomai from the U.S. market, the French company's sales in Europe would press on Iomega's margins, Charles observes. And if Nomai is allowed into this fair land, then Iomega's earnings are really going to be hurting. Did we neglect to mention Charles isn't bullish on Iomega's stock?DOW JONES NEWS 09-20-97
08:06 AM
DIALOG(r) NEWSWIRE(c) 1997 Dow Jones Company, Inc. |
