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Non-Tech : Any info about Iomega (IOM)?
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To: KM who wrote (40932)12/19/1997 5:25:00 PM
From: Steve Wiz  Read Replies (2) of 58324
 
Truf

You have to remember that Iomega still has a correlation with the market in general and a very high correlation with the technology
sector. IOM's beta is around 1.8-2.1. This means when the market is down 10% IOM is down even more 18-21%. Also the advent of program trading, were massive computing power crunches algorithms looking for companies overvalued in the short term, using cash flow, volatility,
price momentum, Iomega along with other stocks like Dell and Citrix that have not succumbed to the current shocks are placed in a basket. The computer flashes telling the trader to sell the basket.
Fundamentals have nothing to do with it.

Institutions haven't stepped in until now because they add positions in Iomega at 22 not 32. If you notice Truf, everytime IOM hits 22 institutional ownership increases this is no coincidence. After Octobers sellof when IOM went to 22, Fidelity, Soros and others doubled their positions. I propose that they are doing the same now.

Perception and reality sometimes become decoupled with one another based on fear and other market bias. It is at those inflection points when perception and reality are at their extremes were large profits lie. Over the last week this has been the situation in IOM. Fundamentals are strong yet perception is at it's widest variance to this reality.

My statement "A short squezze is immenant" still stands.

Steve
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