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

To: Gottfried who wrote (2231)	8/12/1999 11:39:00 AM
From: Steve Lamont	Respond to of 5023

options: (doesn't seem to add much but..) -- from street.com thestreet.com There's no there there. At least that's the kibitzing from options strategists and traders, who are scratching their heads over a stock-market slump that feels stretched and ready to snap back, even as call-buying continues to evaporate. "The market is due for a bounce, but there's no oomph to it anymore," said Rod Jamieson, strategist with Everen Securities. "The Tuesday market comeback fizzled, and the whole thing just seems tired, really oversold. It's weird and yet nobody cares." Here's his outlook: If a sharp rally does arrive, Jamieson is looking for a "few hundred points higher from current levels to, say, 11,200 in September or October, and then followed by lower lows than we've got now. We could even see this rally take us up through the end of the year" and through worries about Y2K. At that point, technical charts will start to form a head-and-shoulders top for the Dow, and "after that it might run into some trouble." One of the few eyebrow-raisers to emerge out of the Wednesday session was another massive piece in Iomega (IOM:NYSE), the second sizable order to come down the pike from an institutional investor in the past two weeks. At 10:22 a.m. EDT, 16,750 contracts in Iomega's August 5 puts crossed at a price of 1 1/4 ($125), down 1 1/16 ($6.25) or a "teenie" on the American Stock Exchange. Open interest totaled over 50,000 contracts in that strike alone. "The buyer came in as Bankers Trust on the buy side and SBC Warburg on the sell side. It's an odd number, 16,750 contracts, and it makes me think they were moving stock against this option trade," said a Chicago pro. Open interest in Iomega has been mounting as well, with positions built up in the August 7 1/2 calls (12,803 contracts) and August 5 calls (24,493 contracts). Neither of those options traded Tuesday. Iomega stock was down 1/16 to 3 11/16 on volume of 247,800 shares.

To: Gottfried who wrote (2231)	8/12/1999 1:08:00 PM
From: Rocky Reid	Read Replies (1) \| Respond to of 5023

Meanwhile, it looks like the sales of Iomega's 40MB Bomb have slowed to a crawl. My source tells me that only a few (6-12) have sold per day for the past couple of weeks. Compare this to the pre-orders and first week shipments that were in the thousands. Supply is not a problem. My new estimate for Iomega's Bomb! 3rd Quarter sales: Revenues $7 Million Loss $17 Million on the Bomb! line External Bomb! drive unit sales: 2000 PC Card Bomb! unit sales: 20,000 (virtually all sold to Iomega Investors and tech-heads prior to and immediately after release) My only question is: How long before Iomega cancels the Bomb! line? Sales for this fiasco are turning out to be far worse than I predicted. And the losses only hurt Iomega's already frail bottom line.