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

To: Jock Hutchinson who wrote (57295)	7/18/1998 3:00:00 PM
From: Ken Pomaranski	Respond to of 58324

Hi Jock! Good response. I just have one comment about this statement: << Moreover, Ken, over time I could care less just how many Zips you purchase. The issue is not how many, but what percentage of the market IOM has in the high density removable storage market. IOM doesen't aim to be GE. It aims to be a leader in the high density removable storage market >> What good is being the market leader if you can't make any money at it? I say that being the market leader means NOTHING. What matters is how much profit a company can make, so that they can GROW and expand. The big money is made by investing in a growth company as it expands. What Iomega is doing is cutting costs and curling up into a ball to survive. This is not growth stock investing but gambling. It really is. You are gambling your hard earned money that ALL of these things will occur: 1. Iomega will cut cost enough to make money on ZIPs again 2. ZIP disks are really consumable razor blades 3. # of ZIP disks will expand more rapidly. (the large increase in Q2 didn't really help the bottom line... take a look) 4. CLIK! will both replace JAZ revenues AND be strong enough to grow the company again (add additional revenues) 5. IOM Survives long enough to make all this happen in face of stiffer and stiffer competition. If these falter, the stock will be at Syquest levels eventually. However, management was successful in putting a floor under this stock, and I think some money can be made on the upside in the next few months. The money on the short side is bad money now. BUT, there are ALOT of expectations built into Q4 (CLIK!, positive cash flow, positive earnings, etc...) that would make it a VERY good short come Christmas time or so. Good luck to you! PS: watch THQI this week. Earnings announced Wed after close or Thurs before open. perfect cup with handle formation. watch for possible breakout on high volume past 33 3/8. This is the sign... kp