Iomega investors are by definition "Emotional Investors."
The mindset that would jump into a risky stock like this entails a certain amount of emotion, bravado, and mania.
Does anyone here really think that they have just discovered this secret little gem of a company, with a fantastic story involving Zips replacing 1.44MB floppies, and somehow have outsmarted the armies of Brokers and Mutual Funds who choose to ignore IOM?
Please.
Everyone and their grandmother who has money in this market knows about this company, and also knows that this Zip story is now 2 years out of date. Some Iomega investors who show up on these threads only now have made this Zip discovery, and think they have an exclusive on insight.
Sad.
This Q is already about 1/2 over, and still no Buz. No Jaz2. No Vapor!. No nothing, except an aging 100MB Zip, and a Jaz line that grew only 7% last year. Expect the Jaz line to actually record a sales decrease this year. Because of the soon to be released 4.7 Gig Quest, the possible Orb problem, and the present SparQ bargain, Jaz cannot be counted on to contribute positively to Iomega's overall earnings growth. It is too expensive. But, if they lower the price, margins are hurt. Catch 22-- but back to the point.
The point is, there is no exclusive on the Zip story. The Street has heard about it, and evidently remains unimpressed. Anyone here who thinks they know something The Street doesn't, is just kidding themselves.
Emotion can be a dangerous thing. It can blind you, it can cause you to see illusions, it can distort reality. Anyone who thinks that Iomega can sustain a growth rate, thereby supporting a high PE, needs to send out a distress call to Reality Station. Pronto. |
