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

To: Ken Pomaranski who wrote (42834)	1/8/1998 5:01:00 PM
From: Warren Gates	Read Replies (2) \| Respond to of 58324

<< Iomega has failed to make the ZIP a 'necessary item' of a PC. This is what has me bothered. >> Ken, IOMEGA doesn't really need to do this. All it needs is to make sure that whoever has a need for a cheap removable storage device would go for a Zip. As has been mentioned here, there is always a need for a 'disposable' form of media for 1MB files, hence, floppies just won't disappear. They don't need to. If IOMEGA really wanted to replace the floppies, they would be selling 10MB, 20MB, 50MB Zip disks now in all flavors. Trouble is, they'll probably cost as much as the 100MB to manufacture. The thing to consider: IS IOMEGA BEING FORCED TO CUT ITS PRICES? As long as they could control their own pricing, and let the demand as well as manufacturing efficiencies dictate this, then, the company will be OK with a forward PE of 20. Syquest SPARQ is a threat, but for how long? Chances are, they'll be bleeding more red ink because of their fire sales. They'll eat into their other products. The demand is there but if they can't make money, how could they meet the demand? Sony's HiFD is a threat but the same people who would opt out of ZIP drives/disks because of cost would opt out of it and just go with floppies.

To: Ken Pomaranski who wrote (42834)	1/8/1998 7:39:00 PM
From: Tom Gebing	Respond to of 58324

<< Sorry! But I finally bailed >> , << My 12 1/2s were losing too much time value >>, << FYI, my total position lost 3/4 point >> , << I started to worry again last weekend when I took a look at the advertisements in the paper. In all the computers advertised, I saw ZERO with ZIPs included. >> Well Ken, If your idea is to jump in for a quick hit using options, then all I can say to you is " Thanks for playing ". Is last week the first time you started looking at the ads in the newspaper for trading decisions ? I am sorry Ken, but anyone who just jumps in for a quick hit without doing some homework has no credibility with me and the other longs here. If you did not do your homework in the first place why would you be an expert in Iomegas future now. See Ya !!!!

To: Ken Pomaranski who wrote (42834)	1/8/1998 9:54:00 PM
From: Steve Wiz	Read Replies (1) \| Respond to of 58324

Ken, I would tend to agree with your perception Ken but an event or events have materialized that might give Iomega its cost break so desperately needed to standardize Zip on pc's. As we know, 1.44 floppies cost pc oem's, what, $10-$20 apiece. When the Zip first came out they shipped to OEM's at around $75-$90 apiece. At these prices it would be virtually impossible for Zip to standardize especially with margins shrinking so fast on pc and their convergence to sub $1000. Going back to the statement about events, the events I'm talking about is the collapse in Southeast Asian currencies. If you could only see in real time as I what has happened to these currencies it has been awe inspiring. The currency that influences this board the Malaysian Ringgit has begun yet another free-fall. At one point last night we watched the Ringgit hit a intra-day low of 4.880 to the dollar. Since most if not all of Iomega's manufacturing costs are in Ringgit now, as the Ringgit continues its nosedive, Zip costs dive along with it. This is the one event that has materialized that has fundamentally reshaped Iomega's ability to lower cost structure enough to become competitive with the 1.44. Ken, with the Malaysian government regime following the lead of other dogmatic regimes such as Indonesia, the Ringgit could very well fall even lower, maybe to the 5-6 range vs dollar. Based on a 4.75 to the dollar rate, IOM could sell Zip internals at $45 or lower. Don't forget also that this latest fall in the ringgit has started in 1Q. Steve