As an investor that has no position in Iomega, I think I can offer a more unbiased and objective opinion on the stock than the longs or the shorts.
Friday's drop on heavy volume does not speak well for the stock, and it looks like it hasn't yet found a bottom. Stocks often run up farther than people expect and they also fall farther than anyone thinks. You cannot say that Iomega is cheap based on its PE, PB, PS, or any other measure because in the short term, a stock's price can have nothing to do with its fundamentals.
I read a lot of the posts on Iomega and have seen many excuses for people not cutting their losses. The main excuse in these threads is, "I'm a long term investor." Well, I bet that if many of the longs could just get out of Iomega and break even, most would do so in an eyeblink, and forget that they've ever heard of this stock.
If you bought Iomega in the 30', 40's, or even higher, you really should have cut your losses by now, no matter how bright you think the outlook on the company is. If you're still holding on to major paper losses or are meeting margin calls, you're either very bold or very dumb.
I'm sure that you've heard the saying that there are only two types of investors. There are old investors and there are bold investors, but there are no old, bold investors. Think about it, the Street has many wise sayings because the old timers that have come before us have been through many of its cycles. Old timers exist because they live by one rule, 'cut your losses short.'
My advice to those who are bleeding cash at this point is to swallow your pride and your losses, clear your head, and put the stock behind you so that you can move on. You want to preserve whatever capital you have left for the next Iomega out there. Believe it or not, there is a future and there are other stocks beyond Iomega. |
