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Non-Tech : Any info about Iomega (IOM)? -- Ignore unavailable to you. Want to Upgrade?

To: Alan Rosen who wrote (41556)	12/26/1997 9:55:00 PM
From: Gary Wisdom	Read Replies (2) \| Respond to of 58324

Alan Re: Computer City and post holiday Zip sales Ben, FWIW, I have a feeling that this is definitely the start of the $99 Zip EVERYWHERE. I do not think Computer City is selling them for $89 because they ordered too much. Zip is a very competitive product and they are trying to bring people in to their stores with this promotion. Notice that the discs at Computer City are anything but cheap. The savvy purchaser might buy their Zip drive there, and drive over to Fry's for the discs at $99 for 10. However, Computer City is hoping the purchaser is not that smart. The key will be how fast these drives and discs move out. It is hard to tell by looking at the stacks on periodic bases, as they may or may not re-stock them. But hear this. Whether it's Computer City, Best Buy, CompUsa or whatever, their buyers are very smart. They know how much product they can move. And inventory costs money. They will move these products out very quickly. They would go under if they couldn't. Consider that 300 Zips/store ties up about $30K in capital. And this is just one product of thousands for them. My money's on that they're moving at least half of that per week. In any case, I am very upbeat on Iomega's prospects. My only concern is how the Street deals with it. As the genius Rocky repeats over and over, Iomega doesn't benefit from the idiotic euphoria that companies with no earnings reap. There's no way that Iomega should be selling at the current multiple. However, we'll see soon enough, as earnings will be out in a month. Anyway, keep doing those channel checks. BTW, at Fry's today, some clerk was telling a customer to buy Syquest instead of Zip. He had the nerve to tell the customer that software doesn't run on Zip, that it is too slow for most programs. I was so pissed, but didn't say anything at the time. However, when the clerk left, I talked to the customer. And, he put the Syjunk back and bought Zip. Good triumphs over evil once again.