To: Gottfried who wrote (1379 ) 7/5/1999 3:29:00 PM From: Ken Pomaranski Read Replies (2) | Respond to of 5023
Hello! Happy Independence Day! (a bit late..) Haven't been around for awhile. I notice that the board (as usual) has taken a strong turn toward unreality again. denial at it's best. Don't take this the wrong way, but I think you guys are some of the biggest suckers on this planet. Amazing how Iomega pre-announces a dismal quarter, you bail, then jump in again as the stock makes a small uptick. It is very funny to watch. You take this uptick as a sign that things are great with the company again. If you want to read about yourselves, check out: "The Psychology of Technical Analysis" by Tony Plummer. Gottfried's post reminded me of the reason things have and will keep turning sour for Iomega. The fact is this: The macro-trends surrounding the PC industry is killing them. This move towards cheap (and free!) PCs will wipe out the ZIP drive, especially since Iomega has basically given up on making them standard. I called this 2 years ago, and I thought I should point out the data currently available is fitting perfectly. I always thought that Iomega would fail at the OEM market.. The ZIPcd thing is also funny. If you think you can revive a business by buying a device, slapping your name on it, and re-selling it, then you guys are in for a surprise. This kind of model cements in razor thin margins. What's more bizarre is that this product eats right into their ZIP business. Trade 30% margins for 10-15% margins. This works!! ;) When it comes to CLIK!, it's two years too late. It comes out behind the technology curve. It's a well known fact that in order for a new technology to take over an existing one, it MUST beat it in performance, price(!), and size. CLIK! has none of these traits. Fool yourselves on cost per Mbyte, and ignore the entry cost. That's fine. But I know better. You'll see, next year at this time. Lastly, I find it VERY funny (and sad) that your self appointed gurus find it necessary to trash people rather than add anything of value to the base knowledge about Iomega. Mooning in posts, and other 5 year old behavoir is common. Unfortunately for those who want to make money here, this is the kind of people this stock attracts. See you after earnings! kp PS: Anybody buy EXDS when I mentioned it at 76? I normally don't like posting stock picks (because I find that most people somehow manage to lose money anyway, even on stuff that doubles, triples!) but this company looks good...