Reason for the Split
Dave,
The split was announced on 12 November 1997. Here's a link to
the press release:
iomega.com
An excerpt from that press release sums it up:
>David J. Dunn, Chairman of the Board of the Company, stated,
>"The principal reason for the stock split is to increase the
>number of option shares available to recruit and retain the
>Company's growing employee population. Since January 1, 1996,
>Iomega's employees have grown from approximately 1,700 to
>approximately 3,700 as of September 30, 1997."
Regarding your closing observation:
>I'm pleasantly surprised to see such a low volume of trading
>given the doubling of shares. There sure aren't a lot of people
>willing to part with their shares at these prices.
There are, of course, exactly as many people willing to part
with their shares at these prices as there are people willing
to acquire them at these prices, which is why the price movement
is flat. The really significant thing about the low volume is
that there aren't a whole lot of people interested in selling
***OR*** buying just now. Those who have 'em don't think they're
going to go down, nor are they up enough to merit profit-taking.
Those who don't have 'em aren't willing to commit to 'em at
this price, in this particular context of information about
the status of the company. That may change next week.
Drive sales are at about a million a month. The tie ratio is
about ten to one. Thus, to a very crude approximation, about
ten million disks are selling every month.
Cheers, Tom (long IOM) |
