RE: Slamming Iomega / The Next Iomega?
Edwin,
>> Most longs here pretty much confine themselves to gushing about SYQT and carping at IOM and IOM longs who dare to show up here, even ones who courteously post good information. Underdog stocks have two main kind of posters, the hopeful and the spiteful. It's too bad this thread has more than its fair share of the latter. <<
Better watch out... All they have to do is click on your name and they'll see that you post on the Iomega thread. Then, you'll lose all credibility here. If you like IOM and you post here, you *MUST* have ulterior motives. <TIC>
I think that most people here don't realize the total effect that the massive dilution, intense competition, and poor fiscal condition of the company will eventually have on the stock. People are hoping for a pie-in-the-sky "next Iomega" stock, and this just isn't it. On all three points, Iomega was in far better shape than SyQuest currently is:
1) Massive dilution of SYQT. Iomega has split 5:4, 3:1, and 2:1 during the current rise. Since they're current about 130 million shares, they would have been under 20 million shares at the beginning. SYQT is currently sitting at 152 million shares accounted for.
2) Intense Competition. In the past three years, Iomega has become an intense marketing machine (on par with Microsoft and Intel IMHO). Their products have become industry standards in an industry that virtually didn't exist three years ago. Now there are tons of other small companies entering the market, trying to get a piece of the pie. There are "pirates" stealing the technology and the razor blades. It's hard to displace the "king of the hill" when there are dozens of others pushing and shoving here at the bottom.
3) Poor Financial Condition of SyQuest. This is probably the most relevent comparison between SyQuest now and Iomega then, although I don't think Iomega was anywhere near as bad off. I have no idea how Iomega pulled it off. It's a phenomenal accomplishment to be able to ramp up as well as they did, avoid dilution, and end up with as much cash as they have. MBA teachers should analyze Iomega's game plan during that ramp-up and teach it to all students.
Many people feel that SYQT is a speculation stock. I agree. But I think that a "win" is already factored in. There's virtually no upside. Even if SyQuest's new management and products are winners, I don't think the stock will rise. A "ran-also" or "lose" and the stock will take a major nosedive.
I'm through forcing my opinions on the SYQT thread for a while. I'm not really saying anything new (I've said it all before), so I'll shut up, sit back, and just watch for a while. If there's anything new, I might jump back in the discussions.
- Michael Coley
- i1.net |
