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Non-Tech : Any info about Iomega (IOM)?
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To: sheila rothstein who wrote (50004)3/14/1998 2:14:00 PM
From: Richard James  Read Replies (1) of 58324
 
Sheilah,

I addressed this to you for convenience and because your son is an ip lawyer and your husband a judge, for the very same reasons you may feel uncomfortable commenting on the Nomai litigation.

1. I believe that the preliminary injunction will be denied. This is because of two things.

a. Years ago the Ninth Circuit rule was that a preliminary injunction would not be granted in a patent infringement case unless the plaintiff was almost certain to win at trial.

b. Someone posted that Iomega investor relations commented that the judge indicated that Iomega had a high burden of proof. The comment indicates that the judge is following the law as I understand it.

2. I believe the effect of the preliminary injunction's denial will create a buying opportunity for two reasons.

a. Denial of the petition for a preliminary injunction doesn't indicate who will win in long run, at trial.

b. I understand that Nomai is severely limited as to the volume of cartridges it can produce.

3. The granting of the preliminary injunction will tell me that Iomega has a very strong case and is almost certain to obtain a judgment against Nomai. Should the injunction be granted,

a. Nomai would be insane to sell cartridges and risk a likely judgment for treble damages.

b. My guess is that Iomega would rally on the news. How much? Who knows, but my uneducated guess is 1/2 to 1.

Perhaps I am all wrong, but I put my money where my mouth is. In this case, I reluctantly sold my IOM on Friday at 8 11/16, expecting to buy back in after the court rules. I see a 10% chance of a hearing win that would result in a 1/2 to 1 pop, compared to a 90% chance of a drop in the same amount.

I'm betting that I will be able to buy back in at the lower price, but the final outcome of Nomai will be a higher share price for Iomega.

Richard James
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