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

To: Reseller who wrote (47572)	2/11/1998 11:34:00 PM
From: Michael Coley	Respond to of 58324

RE: SyQuest's "Unique" Business Plan. During Iomega's Conference Call, Kim Edwards stated that Iomega had a "unique plan of making money in this business." SyQuest has shown once again that their unique plan is to fund inadequate growth at the expense of their shareholders. For those who aren't familiar with SyQuest, let me take you back a little over a year to when they had 11 million shares of stock. In order to fund their negative margins and their operating expenses, they sold more stock. A TON more stock. Over the course of about a year, they issued another 60 million shares and warrants and preferred stock that account fo an additional 80 million shares. (Yes, that's 150 million shares total.) They've already brought in about $200 million from shares that have been sold and warrants that have been exercised. This pretty much covers their losses for that time frame, allowing them to tread water. Now they have potentially another $150 million that they can bring in on the remaining warrants, assuming they can keep the stock price up enough that the warrant holders would benefit from an exercise. I don't expect SyQuest to be out of business soon. I expect that it'll be a very slow and painful process. - Michael Coley - wwol.com