Any info about Iomega (IOM)? Message Board

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

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To: exit 49 who wrote (17762)	3/9/1997 6:23:00 PM
From: Rocky Reid	of 58324

>>"a huge imbalance" is putting it nicely - those 20million shares can not be bought without 20million sells to fill them - shorts must cover at some point - price becomes irrelvant - buy now or pay even more later is the devil's choice that fuels the squeeze - this does not even take into consideration the carnage momentum traders can cause if they decide to pile onto a devloping squeeze - does anyone really think that the mometum types are not watching this closely - especially after the wsj art short numbers - how much down side profit can be considered to be left in this stock versus the potential for upside disaster for shorts<< It never fails to amaze me that some people can twist the fact of large short numbers into good news. The effect of a large short position, which drags the price down farther, is caused by share dilution. Iomega would have to significantly blow their numbers out of the water by say, 75% better than anticipated, to cause a rapid buy on the street, or share coverage. With it's P/E of 35 (twice that of other drive makers), IOM leaves a lot of room for good news to be ignored, and bad news to be detrimental to the share price. A large number of shorts IS NOT good news.

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