>>To all of you lawyer bashing and lawsuit hating people: Guess what? The lawsuits forced this preannouncement. If they hadn't been filed, KE and the boys would have let all of you get juiced up over this quarter, buy the hell out of the stock, then get your fannies kicked AGAIN. There are too many outstanding plaintiff securities firms involved here. These folks know a good case when they see it.<<
Trufflette -
I disagree. There is a big difference between missing estimates by one or two cents and reporting a loss instead of positive earnings of 9 cents.
I believe that this pre-announcement was made because they could see they were off by a wide margin. It's entirely possible that they didn't know they would miss the last quarter until all the numbers were in.
The numbers of securities firms involved in the suit means only that lawyers know how to read balance sheets, and they could see that Iomega was sitting on a pile of cash.
In any case, we now have a pre-announcement, and it's obviously not good. Again, I didn't check in until late this morning, so I feel like it's too late to sell and I may as well wait to see if the earnings situation turns around in the next two quarters.
One thing's for sure. Unless the loss comes in on the lower end of the estimates AND the second quarter is positive, IOM is sunk. OK, so I'm not really ahead of the perception curve, here. But I have been saying since the last report that they need to have two great reports in a row before the stock price will recover.
BTW, I believe Jaz2 revenues will not impact earnings at all this quarter. Since Iomega counts revenues only for goods in the channel beyond thirty days worth, and since Jaz2 didn't start shipping in volume in February, it will make NO difference in Q1.
- Allen |
