Any info about Iomega (IOM)? Message Board

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Non-Tech : Any info about Iomega (IOM)?

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To: Michael Coley who wrote (51265)	3/26/1998 11:38:00 AM
From: Jock Hutchinson	Read Replies (2) of 58324

Michael: The first thing the new CEO needs to do is initiate a reverse stock split of 2 for 1. The recent stock split was as dumb as it gets. The sooner the better. Why? As many know, there are a large number of institutions that will not buy a stock that is priced under 10, and like or not IOM will be below 10 for a while, and even when it moves above 10, it will still dip below 10. Below 10 falls into the mindset of a beaten stock. Second, there is less liquidity in a stock that trades under 10. Trading in 1/16 ths of a point generates less enthusiasm among specialists--yet a 1/16 th move in the stock price when under 10 is a relatively large move. Moreover, the small investor that IOM wishes to attract will be paying a larger price in commissions for the greater number of shares traded--notwithstanding Internet houses that charge the same amount for a trade regardless of size-up to a certain size of trade. The previous float was large enough. There was no need to expand the float. It's time for the "new" management to acknowledge its mistakes as quickly as possible in order to recapture the respect of the street.

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