JM Pinson's reply to criticisms of his article - any thoughts?
Iomega: J. Michael Pinson's Repy to Yahoo
Readers
by: JMPinson
33723 of 33732
Dear Yahoo Gang,
Thanks for your many notes...I hope that the below helps answer your many questions about IOM.
Sorry that I cannot write back to all of you...
The removable media is very important. We also have a full graphics and web department at our
office...However, my own studies are showing that the 100 MB Zip is losing steam...most in the
Yahoo Chat do not realized that as an analyst, I look out 6 - 12 months, not next 3-5 days ..some in
Yahoo Chat who have written do not understand this..they have the common gambling fever (or are
not really investors at all) vs long term investment goals...as one Yahoo reader claimed that I am paid,
or I am short..neither is true and such statements and threatening notes from those in Yahoo Chat
merely demonstrate the immaturity of those individuals.
The removable media market is changing very fast. In fact it is unclear. My studies have shown that
corporate America is not so aggressive about buying the Jazz Drives. Internet, intra-nets, FTP and
DAT Tape back ups are solving issues compared to working off a zips...the Zip or Jazz is not dead.
Zips and Jazz will still be used..If I thought Zip was dead, I would have issued a Sell Short on IOM at
$9 as I did on Boston Market at $12 3/8 last year....Iomega will pull out of this...I am just not sure
where they will be in market share. Sony and other CD manufacturers are working on improving the
Read/Write CD technology, while cutting retail prices...sometime in 1999, the CD technology will be
much better, faster, and lower cost than Floppy Zip's and Jazz...this means that ZIP and Jazz prices
will also be cut...IE lower profit margins....hard drive prices have fallen so much, companies merely
buy another hard drive for extra (non-removable), compared to more Jazz disks...yes, our firm has
many Zips laying around the office...but Zips are becoming like floppy disks...when was the last time
you actually purchased a box of floppy disks? Many companies are now re-using Zip disks and
swapping back and forth between departments and firms...
IOM: Part 2 of Pinson 's Rely to Yahoo
Readers
by: JMPinson
33725 of 33732
(sorry..yahoo has a text limit per post..it is late, please excuse any typo's..this is part 2 of my reply)
I remember when I wrote about a little company in 1988, '89, 90' and '91 citing that the IBM, Apple
and Compaq were in trouble because a new payer would reshape the computer industry...many fellow
analysts and investors flooded me with mail...this company was called Dell Computer...well the
removable media sector is about to be re-shaped in 1999-2000...and right now it is unclear who the
players and winners will be...
If IOM got rid of the 100 MB drives, and had a CD r/w for $199 with 650 MD CD's...the stock could
go to $40+...I am looking into this...this is why I am neutral right now...I am not sure what all the fuss
has been in Yahoo and CBS chat tonight...I am still doing more homework....Sony is also in the game
here and they may be doing an OEM deal with Dell and Compaq for a new product line...investors
should not rule them out ...I was the analyst two years ago who reported that IOM zip Drives would be
the standard media for Dell and Compaq...no-one else went on the record before I did on CNN news
desk and cited why IOM would rally 100% (back then)...I am not sure about the 250 MB zip yet...still
reading about it...not sure about Nomai....still looking into it
IOM better get on track with a R/W CD product soon...it will be interesting to watch..Let us see how
IOM opens Monday...the stock could open back to $8 - $9...but will it continue?...
I was the one two years ago who wrote about the Zip replacing the 3 1/2" and that Dell would be the
first to have it...but now...well..within 2 years the Zip could be dead and we all use a $6 Read/write
CD...the R/W CD price today is $20 for 650 MB..but prices will in fact come down with faster
technology....do not judge IOM for the 100 MB Zip...the Nomai merger is interesting....I can only base
my comment on what is fact from IOM...unlike many Chat boards where small investors speculate in a
Las Vegas mode, I must make decision on logic and fact...If I am going to be wrong..I would rather be
wrong about a stock by missing an opportunity and being invested in cash, compared being invested in
a stock that crashes.
I will be writing more about IOM at
www.MarketMavensReport.com
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