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

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To: Herb Fuller who wrote (51954)4/4/1998 11:11:00 PM
From: Herb Fuller  Read Replies (2) of 58324
 
All , Re:>>> comment about Iomega <<<
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Well, margins have to be tended to. Margins can lead managements down some pretty dubious paths.

Iomega (NYSE:IOM - news) serves as a good example. Its recent strategy of goosing demand with marketing was supposed to generate "X" in sales, "Y" in operating profits, and "Z" in net income. Voila! Sweet bottom-line growth. Margins don't work that way, though. By their very nature, margins are the result of some line of profit divided into sales. If the sales don't materialize and you've tried to push demand past its natural point of market equilibrium, your margins go straight to hell.
The Zip storage system is an insanely great technology, but you've got to have the right strategy to turn the technology into cash flows.

fnews.yahoo.com
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This is only part of the Iomega story IMO . This news don't address the drop in sales that the box makers are having at this time. This I believe is effecting Iomega bigtime .

I have also read that MSFT and Win 98 will move the computer industry to a new level in the 3rd and 4th quarters .


Herb
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