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

To: Olapet who wrote (50833)	3/20/1998 10:47:00 PM
From: Gary Wisdom	Read Replies (2) \| Respond to of 58324

You might want to read this if you think Iomega can't go down any further . . You all might have thought that Iomega was the dumbest investment I ever made, but . . . I've made worse investments. I'm sharing this with you not to scare you out of the stock, but to give you some perspective on what could happen. I bought a stock last year called Ultrafem. I saw them on CNBC and thought they had a great idea. The product isn't relevant. I bought a modest position that day @ $16/share. Of course, then I did my research. They were a rather new company, doubling their revenue every single quarter. The stock price was well off its 52 week high and the chart didn't look too bad. I thought, given time, they would grow enough and be bought out by a major consumer products company. Of course, after I bought it, the stock price started falling. So, I bought a little more. Then it fell more. I sold a little at a loss so to reduce my exposure. And it fell more. So I sold some more. Down to $13. Down to $11. Down to $9. Finally, I sold my last remaining holdings at $5.50. I didn't have much of it by then. My friend, who also bought stock at $13, said it will come back and that he was going to hold it. The whole time I thought it couldn't go any lower. Today, it traded as low as $.25. Guess I made one right decision (cutting my losses when I did). The problem with the company was not the product. It was the management. They were bad managers and took the company down with them. Iomega obviously will not go down to $.25 (at least not before going to $30, spooking Rocky to cover and then crashing). But, you're not buying a Zip when you're buying Iomega stock. You're buying Idanta and Kim Edwards. And both are big negatives in my opinion. Last year, they should have sold out when growth was great. But they thought they could handle the growth. They've shown they can't. Now, with growth slowing to a snail's pace, no one will pay up for the company. It is up to Edwards to get himself out of the mess he created. I don't think he can do it. He's already shown his cards a little by bailing out long before the news of the problems in the company came out. I have no idea where the stock price will be in one year. If Clik! is a success, it could be north of $15 again. If they don't get their shit together soon, it will be $5 like the Rockster said. To me, the upside isn't worth the downside risk any longer. That's why I bailed last month. The moral here: don't kid yourself that a stock can't go any lower. It can. Also, remember that you're buying management, not Zips. Zips are great; management sucks. 'nuff said. P.S. I won't short the stock like the Rockster. Why? Honestly, I'm afraid the day I short it, KE will resign and the stock will go to $12 overnight. For your sakes, I really hope it does. Good luck. P.S. Flames welcome. I don't care anymore (just like KE)