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

To: Moez who wrote (58220)	1/22/1999 2:26:00 PM
From: mick	Read Replies (1) \| Respond to of 58324

From article in Street.com Iomega insanity: So, Iomega's (IOM:NYSE) stock zoomed to 10 from 3 in the past three months on hope (or was that hype?) that new CEO Jodie Glore would turn things around. Several analysts picked up coverage, and one top exec, Ted Briscoe, bought 200,000 shares of stock when it was around 5 -- a big enough purchase to suggest to analysts that the company was serious about getting out of its rut. Now some investors are wondering whether Iomega will go right back into it. Yesterday the company announced fourth-quarter profits that beat analyst estimates by 2 pennies, but, for the fifth straight quarter, fell short on sales. What's more, it said that next quarter's earnings will either be flat or down slightly. That's not all. Briscoe, the guy who bought all that stock, joined another top exec in resigning; they ran two of the company's most important divisions. And Glore, who is prez and CEO, will now take on the additional job of heading up sales and marketing. Oh, and after 10 months of searching, the company hasn't yet found a CFO to replace Len Purkis, who now is CFO of ETrade (EGRP:Nasdaq). Iomega officials say the CFO search has taken long because it first had to hire a CEO, and it wanted the CEO to hire his own CFO. It says the two top execs left because their functions were no longer needed as part of a streamlined company. And it insists any first-quarter weakness will merely be a seasonal blip, hurt in part by a shortage of components, and that the year as a whole will do very well. That's enough to get longtime Iomega short-seller Marc Cohodes of Rocker Partners off their backs. "The trouble with Iomega is Iomega," he says. "The enemy is themselves. Their early success led to a mid-season and late-season failure. The new guy, Jodie Glore, is washing the dishes and cooking the meals, but don't worry, sales are still down year-over-year." With unsold inventory in the distribution channel running eight to 10 weeks, Cohodes adds, "This is and remains a rudderless ship." Company officials insist they will prove him wrong. Of course, that's what they said last time, before the stock fell.