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

To: HardMoney who wrote (43806)	1/18/1998 9:01:00 AM
From: Les White	Respond to of 58324

RE <<why an extra 130 million shares?>> Maybe KE plans to buy a DD manufacuter. IOM needs capacity. They're going to have to license out an awfull lot of manufacturing capacity to keep up with demand. The DD sector is overstocked, cheap and getting cheaper. Soon to be ripe for M&A activity. What drive maker needs to increase capacity more than IOM right now or in the forseeable future? I don't know what the feasabilities of converting a HDD plant over to IOM's needs are but I would think that there is some price that would make it a pretty attractive proposition. It's just spectulation on my part but if I were a DD maker right now looking for a way out of an overcrowded life boat I'd be praying for someone like IOM to throw me a life line. With an extra load of shares they could easily do an attractive stock swap, gain needed capacity, and keep on truckin. If IOM owned a HDD manufacurer right now we'd be sitting pretty. We could make all the the cheap HDD's needed to keep the doors open then convert to removable storage drives as needed to satisfy an accellerating demand for the rapidly expanding market for RDD's. KE has been very strategic in his planning and execution so far. It would not surprise me that he has a very good use lined up for those extra shares. I feel confident that when we all find out we'll be saying "smooth move KE". Les

To: HardMoney who wrote (43806)	1/18/1998 7:27:00 PM
From: slipnsip	Read Replies (1) \| Respond to of 58324

<I gotta tell you the one and only thing I really don't agree with is this ridiculous stock split...if the needed more option the could have issued more stock...in fact at that time the had 260 million shares Authorized...> Issuing more shares would have been dilutive. I as a shareholder appreciate the fact that IOM made the choice of not issuing more stock and for exploring other options that are available to them. I.E. A stock split. What they intend to do with the extra shares that are authorized and yet unissued I have no idea. Doesn't hurt to have the option of issuing more shares should they need to.