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

To: Rande Is who wrote (56598)	6/19/1998 4:03:00 PM
From: DeCoda	Read Replies (1) \| Respond to of 58324

Dreamer.

To: Rande Is who wrote (56598)	6/20/1998 11:07:00 AM
From: RetiredNow	Read Replies (2) \| Respond to of 58324

Great conspiracy theory. Not meeting debt covenants is a serious problem. Unless Sierk can do some tap dancing and convince the banks that IOM's not going under, the banks could call his loans. Currently, IOM has a debt to equity ratio of about 20% and they have horrific negative cash flows (this is what really concerned me when I went short the last time). Without cash, they won't be able to pay back loans, so they have to sell assets. If they are in default of debt, their auditor won't sign off on the financial statements. If all these things occur, IOM will have a hell of a time convincing its vendors to adopt technology that they no longer can support with cash flows. Don't underestimate IOM's problems. I doubt the above worse case scenario could occur, but to generate conspiracy theories or casually dismiss serious issues is not the way to evaluate a company objectively.