Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Craig Richards who wrote (53505)	4/23/1998 1:49:00 AM
From: slipnsip	Respond to of 58324

* Off topic * If your looking to short, glance at TRAC. 1-10 in hmmmmm lets see..... TWO DAYS Not bad on no news.. 12 Million outstanding.. Where will the mania end. This follows over a year of never being over 1 1/2.

To: Craig Richards who wrote (53505)	4/23/1998 4:24:00 PM
From: Ken Pomaranski	Respond to of 58324

<< Why are announcements of products from Sony/Castlewood/Syquest treated as gospel truth, with everything expected to work perfectly, while announcements from Iomega treated with disdain? >> Look at Iomega's track record for releasing products on time. It's like the boy who cried wolf. The other announcements also reveal potential competition going forward. Iomega has had the MARKET TO ITSELF for 3 years, and look where they ended up.. (good market share, but not even turning a profit. ) Competiton will only make it worse. << Why do you keep looking at the past in trying to value the stock instead of looking at the future like other investors? >> I AM looking at the future. It doesn't look so good. I see declining ZIP REVENUES, not necessarily units. The bulls like to rally around the ZIP unit volume. The number is meaningless. Contrary to popular belief, CLIK! will cannabalize ZIP sales. (if CLIK! is successful) << Why do you think it's a bad thing for Iomega to spend money to grab market share, even if it means going cash flow negative for a quarter or 2? >> A quarter or 2?? I don't think they'll be cash flow positive again. It's a commodity business. Also, a company that sacrifices earnings for market share for too long will have these negative earnings eventualy reflect in the share price. << Why do you ignore the potential of Clik!, which even Rod has recently decided is bigger than Zip? >> ZIP success was incredible. A GRAND SLAM (while it lasted). Two grand slams in one game is unheard of. The bulls are betting on this. And look where the GRAND SLAM left Iomega. << Why, after bashing IOM's price rise because there was no volume behind it earlier in the week, aren't you concerned with a big price rise on high volume in the last 2 days? >> Like I said before, it was a 'cheap stock' rise, a spillover from the microcap mania. It's a 'blip' in the long term trend (down). << Why are you already bashing Clik!'s quality, before the product has even been released? >> The environment in which a CLIK! will operate and the one in which a PC operates is WHOLLY, and TOTALLY different. << IOM was recently at 16 - don't you agree it will probably return there quickly with a successful Clik! introduction and/or big improvement in Zip OEM penetration (or even the perception that these thing will happen?) >> The 'newbie investor' fallacy. Newbies buy stocks that have fallen a ton because they figure that the stock will return to previous highs. Also, I think that as OEM penetration increases, Iomega will lose more and more money. In the CC for Q4, they blamed lowering tie ratios due to more OEM drives for lower earnings. But this is their strategy! On one side of the mouth they say that they are striving for larger OEM penetration, and on the other side they say that by doing this they lose money. Strange. I've said for 2 years that this would happen. Good luck Craig! And pray a lot! kp