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

To: Michael Coley who wrote (49806)	3/13/1998 8:23:00 AM
From: jwk	Read Replies (1) \| Respond to of 58324

Michael -- Thanks for posting your projections. I'd be interested in seeing as much of the work/assumptions behind them as you are willing to share. >>How can margins be in the high 20's and low 30's (compared to 33.4% in Q4)? As volumes increase and costs decrease, the margins should go up. I think he was just giving a veiled reference to upcoming price reductions. << Could be....... but, KE has always maintained that margins would not be sacrificed to price reductions. It will be interesting to see if he can maintain that line. If so, it should send a powerful message to the street and to competitors. Also -- let's keep in mind that I posted PK's numbers from the FOOL in response to Lumpy's braying about expensing the ad campaign. It's been almost 24 hrs. He's put up a few more posts, but I notice that having raised the issue (again) he has not responded to an answer. PK's scenarios appear to show that IOM has lots of room to cover the cost any number of ways. Now then, if sh*tquest was trying to cover 100mm in ads ...... well, that would be an interesting model to construct. IOM is trying to increase the sales of mass consumer products with the use of advertising to the mass consumer market. Whether not they can successfully pull it off remains to be seen. Indications are that at least some product seems to be moving well. There also seems to be a possibilty that increased sales from the initial phases of the advertising attack may be able to generate enough extra revenues to help pay for the later stages. Also, there is the possibility that the ad attack can be staged so a to build to a crescendo by early Q4. Lumpy (can't bring myself to call him rocky 'cause that seems like too solid of a name for someone so soft on reasoning) has raised the question, there's been a response, but I won't hold my breath waiting to hear his counter to it. I'm still waiting (but not expecting) to hear his response to the question of why competing box makers will drop Zip and rush to Sony and help a competitor out by putting one of its drives in their machines. Thanks again, MC, for all the value you bring to this thread. Jack