Re: WOW! What a ludicrous comment. Here is a guy that 2 years ago
Of course, as the person Truff agreed with, I have to heartily disagree with you (Mike) on this one. And, to keep the conversation unemotional, here is my reasoning:
1. First of all, I held through earnings almost solely on the basis that I could not believe any CEO would be stupid enough to A) sell his stock during a run-up without knowing that the next earnings report would be great, thus relieving him of any criticism B) split a $24 stock without being supremely confident that the next earnings report would be so great so to prevent any chance of it falling below $10, where institutions would not hold it and C) in this current market environment, not be stupid enough not to pre-announce if earnings wouldn't meet expectations. KE failed all 3 of these tests.
2. I have NEVER been down on the products. I think they're great. And a big reason I invested was that any company that can sell products of this type and not lower the price with time must have one helluva demand side to it. Again, with 23% growth in North America, and 9 weeks inventory, I was wrong again.
3. I wish I had a transcript of the CC. There is no doubt KE did a horrible job at the CC. His denial of competition, his arrogance in answering specific questions from the analysts, his silence on the recent haircut on the stock price and the effects of the split all contributed to this 34% haircut we all took. IMO, ANYONE could have done a better job on this CC. The fact that they missed is irrelevant; for any other company, they had a great quarter. But, as I've stated numerous times before, he painted such a pathetic picture that the analysts had no choice but to downgrade.
4. Someone said KE has done a great job in the past in marketing and operations. Hello? Are you kidding me? Product delays, component shortages, and quality control are all part of operations. Iomega gets a big fat F for all three. As for marketing, the airplane ads suck. Period. Their promotion stinks. The only thing that's good about this company are the great people that created the products. They are the true heroes, and like you and me, are being punished now for KE's incompetence.
5. Who's decision was it to make a big splash at Comdex on Clik!, a product that they have not even shipped to potential partners for testing? KE. Who's decision was it to pre-announce delays in Jaz2, right when the market was weak? KE. (After all, no analysts had projected earnings from this in Q4 anyway). Who's decision was it to do absolutely nothing when Syquest introduced Sparq? KE.
I don't get it. You people that worship KE need to learn a little more about business. The job of the CEO is to both run the company and maximize shareholder value. (Does the jump in ATT's price solely resulting from the former CEO being replaced ring a bell?) KE gets a big F on both of these fronts.
I think Iomega is a great company with a great product. And, it will survive. But, it won't prosper until KE is replaced.
Maybe the shareholder lawsuit that will appear on Monday will do the trick. Oh yea, if there's any attorneys lurking here, put me down for inclusion. |
