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

To: Brendan2012 who wrote (43394)	1/14/1998 8:14:00 AM
From: Teddy	Read Replies (1) \| Respond to of 58324

IOM is still the Poster Child of Internet Hype, from The Wall Street Urinal: Soaring Shares of 3Dfx Interactive Stir Memories of Iomega's Runup By CARRIE LEE THE WALL STREET JOURNAL INTERACTIVE EDITION Shares of 3Dfx Interactive have caught fire, and they are burning a familiar blend of fuel: a promising technology, the backing of the Motley Fool investment forum and a burst of speculative on-line chatter. The on-line investing forum began talking up 3Dfx on Jan. 5, saying it would add shares of the San Jose, Calif., three-dimensional-graphics software and chip maker to its so-called Fool Portfolio. The backing of Motley Fool set off an explosion of on-line chatter and lifted the stock 14% one day alone last week. 3Dfx shares, at 20 13/16 before the endorsement, hit a 52-week high of 26 1/2 on Jan. 6, and have remained strong -- trading at 26 1/4, up 3/4, Tuesday on the Nasdaq Stock Market. The sudden spike in 3Dfx shares, for some observers, smacks of the wild trading seen in shares of Iomega during much of 1996. The data storage maker's stock swung wildly as it was given rapt attention on the Motley Fool's electronic bulletin board, which is accessible via America Online and the Motley Fool Web site (www.fool.com). Iomega started at around 3 (adjusted for stock splits), hit a high of 27 and later fell back to 7 that year. Today, the stock trades at around 12 on the New York Stock Exchange. Is 3Dfx facing the same fate? Charles Boucher, an analyst at UBS Securities, says that as with Iomega in 1996, 3Dfx's upward movement of late stems from demand for the stock, not from an improvement in the outlook for its business. "It looks like hype, investing in hot names without understanding what the company does and what the dynamics of the business are," he says. Mr. Boucher believes the company is well positioned, but says the stock will be vulnerable if the rally continues. "It's always a dangerous sign. Things that the Fools recommend tend to get hyped. That has happened in the past." The on-line chatter has been giddy. "For two months, I waited for this moment," says one message posted on the Motley Fool bulletin board last Wednesday. "Yesterday was the beginning of the time when the masses begin to be interested in this stock. Don't care about a fair valuation of this stock! ... For the next two months, tdfx is a hero," the posting says, using the company's stock symbol as shorthand for its name. The surge of excitement evoked a cautious response from the people who run Motley Fool. After 3Dfx shares surged early last week, the investment forum delayed making its planned purchase of $11,000 in 3Dfx shares. Such delays aren't uncommon for the Motley Fool when it makes portfolio changes, and it quickly stepped up to the plate once the stock eased back from its highs. It made the purchase on Thursday, at a price of 25 5/8. Gary Martin, 3Dfx's chief financial officer, has attributed the wild action in the company's stock to the chatter on Motley Fool. The company declines to comment further in advance of its fourth-quarter earnings report, expected to be released on Jan. 27. 3Dfx has never posted quarterly profit......