Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Gottfried who wrote (44573)	1/22/1998 7:19:00 PM
From: Chucky	Read Replies (1) \| Respond to of 58324

GM, "Now I buy the stock from you for 30 and you keep the whole 30 for a profit of 10. Nothing goes to the company." But the company now makes a bid for another company, but instead of cash, it is offering its stock. Also, executives and employees are more willing to accept options for compensation if their company stock is really growing. The company pretty much prints its own money after you valued it at $30. Later Chucky

To: Gottfried who wrote (44573)	1/22/1998 10:23:00 PM
From: JYatsu	Read Replies (1) \| Respond to of 58324

GM, I apologize if I gave you the impression that I think I'm "superior".I can tell you I am not. My "naive" investor is one who only looks for where the profit is for them. By "sophisticated", this investor has purchased a small but significant (for him/her at least) portion of the risk. Eg. should IOM tank tomorrow and the Co. is liquidated then most of us would be left with only par value (usually pennies/shr). So this shareholders equity is what allows Cos. access to other major capital markets. There are a few Cos. like MSFT that don't have any debt and enough cash to fund their future. But very few. So Iput to you that shareholders allow a company access to capital. In your example the Co reports the increase in shareholders equity on their 10K, and reports shares outstanding. Moreover shares are used as incentives to bring on new talent in ESOP. I again apologize for not being clear, but I hope you see my point of shaeholder/investors adding value.