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

To: Brian Cunningham who wrote (41791)	12/31/1997 5:42:00 AM
From: Mel Boreham	Respond to of 58324

Brian, I think you are right-on about disk drive jitters and lots of small investors, but at least it appears that some of the big boys (funds) are beginning to discover that the potential of IOM over the next few years is quite large. As you remember, IOM came out with a secondary offering at around $35 last year and those folks who bought in at that time still have a loss in the stock. With the new tax law, long term capital gains/losses are calculated after holding a stock for 18 months rather than the 12 month holding period under the previous law. So it may be possible that some are establishing their losses in IOM for TAX purposes before the end of 1997. I realize that this is only speculation, but the new law really does change the tax strategies of investors in this regard. I know, I will be holding IOM for at least 18 months before taking profits as the difference is pretty significant, 20% versus 28 to 33% tax on gains held for 18 months. A lot of IRA and 401K money will be flowing into the market beginning on Friday, Jan. 2nd, so I look forward to some renewed activity in IOM after that point. Of course having twice the number of shares now tends to BUFFER movements in the stock to similar percentage wise moves. A move of a point now is equivalent to a 2 point move before the split. I am looking for a nice upward move just prior to earnings at the end of January and who knows, maybe there will be a recovery in the Disk Drive stocks as well... I also think that IOMEGA will have a few surprises for us all in the upcoming conference call after RECORD EARNINGS are released... NEW PRODUCTS OR UPGRADES OF CURRENT PRODUCTS... and a possible new line of OEMs for the Zip drive and annoucements about Jaz 2. We shall see what develops. The January Effect will be a welcome event for us all... My Very Best Wishes to All on the IOMEGA thread for a Happy, Healthy and PROSPEROUS 1998! **Mel**

To: Brian Cunningham who wrote (41791)	12/31/1997 6:30:00 AM
From: KM	Read Replies (2) \| Respond to of 58324

<<I don't get this tax selling explanation for IOMs retracement. Since IOM is up nicely for the year, particularly when it was at 30, taxes are a disincentive to selling. Seems more like profit taking, market and disk drive group jitters, and just plain technical movement to me.>> Unless I have gotten bad information somewhere (always possible), Fido acquired much of their IOM in the 20's. Don't forget, also, that fund managers sell to lock in their gains for the year for purposes of advertising quarterly/yearly returns to potential new investors, and then turn around and buy back in January when all the cash comes in. There is also the issue of raising cash for the year end distribution of capital gains and dividends to the fund shareholders. Any of these can contribute to selling of positions. This is the "profit taking" to which you allude, as small investor profit taking alone is highly unlikely to have an effect of this magnitude on the stock price. When you add in the technical picture which I and others have mentioned here ad nauseam (the move up to 32-33 on light volume) and figure that professionals knew that Fido and possibly other institutions were dumping some, it's a no brainer to figure that the professional shorts and those in the know piled on then. I would have too if I had known about it, but that's the advantage the professionals have over us. Frankly, I don't buy the disk drive sector theory. The problems being encountered by companies in that sector are much different and I doubt that sophisticated investors are still lumping IOM in with that group. All just my opinions of course - free and worth every penny!