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

To: Robert Skinner who wrote (48259)	2/19/1998 7:27:00 PM
From: Rocky Reid	Respond to of 58324

IOM undervalued? No way Dude. IOM is a one product company. Its PE around 20 finally puts it in a realm where one doesn't have to worry about the price getting a 50% haircut overnight. But its days of PE 40 are over. Even Iomega Super-Bull Ken Marcus has taken down his website charts displaying what-ifs of IOM stock price w/PE 40. As for shorting Friday, that would be stupid. I will look at shorting if IOM gets above $10 again. Shorting tomorrow on your challenge wouldn't make much sense, as options expiring could send the stock either way. At IOM's current price, most options are out of the money, and the big boys want it that way. IOM shouldn't move much tomorrow at all. What Iomega and its investors have to worry about now is the revenue slack-off due to price reductions across the line, Sony, declining Jaz sales, Zip disc knock-offs, Orb, possible SparQ ramp-up, and lower tie ratios due to even more percentage of drives going to OEM's. Oh yeah, all that and the pending court cases. At first, I was as skeptical as any here about these investor lawsuits. But as the facts have been unfolding, I am not so sure. Iomega did indeed heavily promote Jaz2's (and Buzz) release last Fall, and every catalog had big splashy ads with Jaz2 drives for sale. This wasn't just for a week, but for an extended period of time. During this time, insiders did indeed unload their shares. Then, Jaz2 was pulled at the last minute, the earnings disappointed, and the share price collapsed. Is this grounds for restitution? I dunno. Generally, I'm of the "you takes your chances" type when it comes to the stock market. Very few of these cases, save a Bre-X or Centennial total fraud ever, or should, amount to anything. However, if these Jaz2gate allegations are proven in court, Wouldn't this leave KE and others open to actual criminal charges of Fraud? Maybe there are some Corporate Lawyer types lurking here who would be much better qualified than me to guess at this. And finally, the tired comparisons of Iomega to other tech stocks is just plain wrong. Especially those comparing IOM to MSFT, INTC, DELL, CPQ, or other Blue Chip techs. All of these companies have much larger market caps, much longer histories, much better Wall Street relations, and consistantly pull in Earnings Q after Q after Q.