Uh oh. Motley Fool is now panning Iomega. All the fools are going to jump ship. Look
for a $10 point jump after they do.
UH....Let me do the math?<g>
Thats like jumping off the Titanic after it hits bottom! Sounds pretty foolish to me!
Jeff
From the Fools Port....
What was with the volatility in Iomega's (NYSE: IOM) shares today? It
was down nearly 6% at its lowest point before closing down 0.65%. Hey,
Iomega, good idea on the split! Not. Why didn't they just get an
authorization from shareholders to increase the share authorization? I think
a $9 stock price is embarrassing, actually. Also, why is the company
spending so much on advertising? I thought the plan was to get OEMs to
adopt the Zip as a standard. I personally don't understand Iomega any
longer and I think that too many companies, 3Dfx included, put way too
much stock in Intel's strategy of branding the CPU. Intel branded the CPU
after they had won a technology lock-down, not before.
Without a lock-down on the technology standard, Iomega might not supply
highly-satisfying returns to shareholders going forward. I also believe the
same of 3Dfx. (And the Fool is Foolish enough to let differences of opinion
stand, especially in the Fool Port and when coming from guest columnists,
because the portfolio is meant to be a real-money example, not something
to blindly model.) Anyway, Intel's x86 architecture and then the Pentium
locked down the standard and market share. They started the branding
campaign to further lock down market share and because they were
generating so much free cash flow they had to do something with that cash.
I personally believe 3Dfx and Iomega have that whole cause-effect
backwards, but I know you could argue quite effectively the other side of
this argument, too. |
