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Non-Tech : Iomega Thread without Iomega

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To: FuzzFace who wrote (9593)	5/3/1999 12:54:00 PM
From: Ken Pomaranski	Read Replies (3) of 10072

Sorry, but I think that I'm giving objective and realistic opinions on Iomega. I've been long several times in the past, and will be long again when the time is right. Yes, I agree that the base reliability of ZIP drives are very good. Much better than floppies. I would take a ZIP over a floppy drive (and disks) any day of the week. COD nags at me because (if you believe the reports) it is a hint at a wearout mechanism of disks and drives. I think it is a concern, but not fatal. Many of you miss my point here because you read my posts and assume that I hate everything about Iomega. I give objective opinions but I get attacked because they don't match the prevaling view of the thread. I would be the biggest cheerleader on this thread if I thought that things looked promising. So one more time, here is my position: Iomega makes GREAT products, but it is very difficult to make money in this market. Period. Great products do NOT necessarily translate into dollar signs. What has occurred can be summed up in one sentence: Iomega could not make up for falling ZIP margins due to the change in product mix. It's that simple. So what they are doing is consolidating, cutting costs, cutting R&D, cutting advertising, etc.. This is not typical of a growth company. It is more like survival. Iomega also cannot demonstrate that they can make consistent money off ANY other product. This also is not a good sign. Lastly, The ZIP 'magic' is not showing up with CLIK! ZIP was the MUST HAVE peripheral in 1995 & 1996. No one cares about the CLIK! There it is! One paragraph that sums up why I'm not currently invested in Iomega. All the balance sheet data (so far) supports the above view. The bulls are betting that by some 'magic' things will turn around. My stance is to invest elsewhere until the turn-around actually starts showing up in the numbers. Patience.... kp

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