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: Les White who wrote (56335)	6/18/1998 10:05:00 AM
From: Kevin Linder	Read Replies (1) \| Respond to of 58324

Normally I am a lurker, but had to respond today. IOM and most other large public companies carry directors and Officers Insurance which will pay for a legal defense against class action law suits. Besides, have you ever seen most class action law suit settlements? They do not typically affect the bottom line. GM's a few years ago gave everyone who owned a certain model truck $500 trade in rebate IF they bought a brand new truck within a few years. Besides paying the lawyers a few million dollars no one really benefited. In regards to the takeover rumor, why does it not make sense? The disk drive makers have finally started to recover. The box makers are looking for ways to differentiate their product. My thoughts have always been that one of the (healthier) disk drive makers would eventually buy IOM out. SEG would be a good example. Higher revenue streams for both companies, the financial strength to support the higher advertising levels and guess what? The combined entity would equal a $10 billion company in revenue with lots more growth potential. DELL, CPQ, GTW probably would not buy IOM, but IBM would be a potential company. Proprietary technology, good market position, good growth potential with the right marketing. It does fit into their takeover "profile." Kevin Linder

To: Les White who wrote (56335)	6/18/1998 10:21:00 AM
From: Jock Hutchinson	Read Replies (1) \| Respond to of 58324

dogs without fleas? Les: That's as silly as it gets, and you know it. When you have a company whose stock price tanked from 16 to 6 after the CEO made positive comments and then sold a large block of shares, you have an enormous problem--not a dog with a few fleas. Your comment reflects the attitude that KE had, and it still resonates throughout the corporate culture of IOM--a management which would not even divulge to the loyal IOM shareholders any kind of reasonable projected gross margin for this quarter or projected sales. Presumably this makes you a flea in the eyes of current IOM management Les. Since you are in for the long term Les, perhaps you can enlighten me as to what further percentage of the removable storage market you expect Sony to capture. Currently, they have a much larger percentage of the removable storage market than IOM--which might just as well be termed the Johnny come lately as Sony, since Sony has been the market leader in removable storage since 1981.