Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : The New Iomega '2000' Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Herb Fuller who wrote (1097)	6/25/1999 10:32:00 PM
From: Rocky Reid	Respond to of 5023

>> would have thaught that Rocky would only purchase products that has no flaws.<< Speaking of flaws, I understand that there is still no Flop! drive that is compatible with Mac. Just PC Windoze.

To: Herb Fuller who wrote (1097)	6/26/1999 9:44:00 AM
From: D.J.Smyth	Read Replies (2) \| Respond to of 5023

If it sounds like I'm getting a little angry, you got that right, Buster. Buster? My six year old used that word when he was playing stick em up. At what age does Rocky think he should stop using this word? hdl, As for the tie ratio article of zip disks to zips; there was a comment made by Cohodes which made this point; but it was more philosophical interpretation of the data at hand, than a breakdown in sales of zip disks to zips. His comment was that IOM presupposed that the number of zip disks per zip drive would continue to increase over time even as the number of floppy disk to the floppy drive have so done. I don't know if IOM presupposed that or not. It was clearly stated early on that the tie ratio started out at about 2 disks per drive and moved up to 4 disks per drive and there has been no new credible information to show that the number of 4 is substantially decreasing. With businesses the number is higher; with individuals it is lower. The bottom line of zip disks to zip drives is related to the mix of business purchases to individual purchases. The zip drive was first used primarily by techies and businesses and the tie ratio was increasing substantially. But as it has moved into the masses, the ratio increase has been dropping (not the number of zips per drive, just the increase in that ratio), but only because the bell curve spread has increased relative to the number and type of user - not to any phenomenon which suggests the zip is being used less over time (as a slightly decreasing tie ratio to Cohodes has suggested). So, with 25 million zips, over 100 million zip disk have been sold. As you move up to 32 million zips, a 22% increase, toward the year's end, you'd pre-suppose that the sales of disks would increase to at least 135 million (moving from 4 disks per drive to 4.2 per drive), a 35% increase - the increase in the ratio of zip disks to zip drives was to substantially widen over time. What they discovered is that this number is widening slower than originally thought - due, as stated before, to the spreading of the bell curve relative to the type of user; nevertheless the increase in zip disks per drive is continuing to occur, but at a slower pace than some analysts had originally presupposed. So, instead of the tie raio going from 2 to 4 to 8 to 10 disks per drive, it has gone from 2 to 3 to 4 to 5, and so on. increasing, but not as fast as some analysts wanted; nevertheless, fast enough to keep IOM in the black if they can get their labor picture in order relative to the jaz. as you move toward the year 2000 when 50 million zips should be in place, IOM should be selling anywhere from 90 to 130 million zip disks per year, which, with a 60% profit margin (not gross margin, profit margin) can be a substantive gain if they keep their other costs in line.