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

To: jhild who wrote (52077)	4/7/1998 2:15:00 PM
From: Bill Lin	Read Replies (1) \| Respond to of 58324

The naming of the CEO, is a short term news item. Essentially we already have a split in operating responsibility. Sierk will handle the financials and the COO will handle the operations. Acquiring company technology like Castlewood may be a target of AntiTrust litigation, but on an NPV analysis, should be positive, given the amount of R&D that they don't have to spend. I agree that if the price dips to 0.7 times trailing sales, the likelihood of takeover (or at least the talk of it) will increase in magnitude. The CEO search is not as important as a coherent strategy on how to compete in a price competitive market like the HDD sector. A vision of industry trends, manufacturing technology and corporate alliances (technology, not marketing), has to be laid out. IMO, KE underinvested in R&D and overinvested in marketing. Sierk's 6 sigma drive within IOM should be unsettling and healthy for production. BL