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

To: Michael Coley who wrote (45260)	1/24/1998 1:10:00 AM
From: Dave Krishna	Read Replies (1) \| Respond to of 58324

Michael, There are a lot of things I find hard to buy regarding the conf call. 1) I don't buy this reasoning that the stock is down because of the large ad campaign announced in the call. I think this is the best excuse because it was a decent quarter. What upsets me the most and what I believe crashed the stock, is the extremely upbeat 3rd qtr conf call which left everyone thinking the 4th qtr would be exceptional. With the 3rd qtr momentum, holiday sales, no more supply issues, and a huge backlog to be filled, missing the 4th qtr was hard to imagine. The fact that they did, sends up numerous red flags. 2) Asian Crisis. I was sickened when I heard this. IOM does very little of their sales in Asia. Another red flag. 3) $100 million ad campaign. I've always thought they needed to do a massive ad campaign, but doing it now in the face of the missed quarter and you get very nervous investors. This issue was not explained well in the call and left everyone to draw their own conclusion as to why they are doing it now. Hmmm, must be decreased Zip demand. Big red flag. It is now the perception (rightly or not) that Iomega needs to succeed with this ad campaign or their flagship product is dead. Exactly what the bears have been craving. Is this really what KE wanted or expected people to take away from the call ? I highly doubt it, but that is what he did. So now the market still trying to understand how this company could miss earnings has to deal with big time uncertainty going forward. A lot to swallow. I am still long this stock, but am very concerned going forward. It is amazing because I was quite comfortable holding this stock just 2 days ago. There is a lot here that doesn't smell good. KE sells, split the stock, and then miss earnings with very cautious forward looking statements ? Hoping for better news to come. Regards, Dave

To: Michael Coley who wrote (45260)	1/24/1998 4:54:00 AM
From: Bill Ulrich	Respond to of 58324

Michael, re: tie ratios That's been fishy (in my mind) for awhile. Early last summer, the general thread concensus was that it was around 5. You may remember that I conducted a survey around that time. Got a few hundred responses (from lurkers&#151very few from the thread(!)) After several weeks the survey arrived at 10. A week later, the CC said, "OEM sales hurt tie ratios". I said, "What??!!". The thread posted back, "Oh, well the CC said OEM sales hurt tie ratios." Yes, this is a strange beast, indeed. '10' seems to be the number bandied about now. What's up with that&#151do they want '20' before happiness abounds? -MrB

To: Michael Coley who wrote (45260)	1/25/1998 1:31:00 AM
From: Cogito	Read Replies (1) \| Respond to of 58324

>>I'm still not sure that I buy the "OEM sales hurt tie ratios" argument. As you pointed out, OEM sales have been increasing tremendously over the past several quarters without hurting tie ratios. And if you look at the numbers, retail unit sales increased slightly more than OEM unit sales this quarter.<< Michael - You have to remember that OEM sales increased something like 55 to 60% from the previous quarter, so the mix was much richer then ever before. I believe that the tie ratio will increase quite a bit this quarter. The same thing happened last year. - Allen