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Non-Tech : Iomega Thread without Iomega -- Ignore unavailable to you. Want to Upgrade?

To: Senthil Sankarappan who wrote (6583)	1/22/1999 4:43:00 PM
From: Hunter Vann	Respond to of 10072

cbs.marketwatch.com

To: Senthil Sankarappan who wrote (6583)	1/22/1999 7:37:00 PM
From: Bobo Bear	Respond to of 10072

>>>Even IOM's goal is only 5% net margin and so if they have 2 Bil in sales, we can expect max 100 Mil in profit which is like 35c/share. So, unless the sales improve dramatically, the profits are going to suck with this 5% net. It seems someone read my recent postings, thats cool. I find it interesting how a lot of the posters zeroed in on the break even first quarter. But very few postings on IOM's long range guidance. Anyways, the CC said IOM management was expecting "middle single digit" net income for 99. Maybe their goal is 5% maybe its something different. Goals and expectations can be different things. I know I'm just being picky. I'm just glad someone else commented on Iomega's long range guidance.

To: Senthil Sankarappan who wrote (6583)	1/23/1999 3:42:00 AM
From: Bob B.	Read Replies (1) \| Respond to of 10072

>> YES. IOM IS A CURSED COMPANY. It is cursed to be in this kind of Biz where there is so much uncertainity and cut throat competition and companies are willing to sell in loss just to be in the game. Even IOM's goal is only 5% net margin and so if they have 2 Bil in sales, we can expect max 100 Mil in profit which is like 35c/share. So, unless the sales improve dramatically, the profits are going to suck with this 5% net. << Senthil: In earlier posts, I said that "time will tell" whether Glore's negative forward-looking statements were a smart move or not. I also raised the possibility that the statements were made for effect, rather than a true depiction of the company's estimates. Consider this: Iomega has eliminated most of its serious and non-serious competition, at some risk to itself. It stands poised to take full advantage of a literally once-in-a-millenium opportunity. While to date its products have been purchased by 5 to 10 percent of potential customers, 1999 will bring a mass perceptual distortion that will cause perhaps 50 percent, maybe more, of those potential customers to need or think they need Iomega's products. The only remaining potential competition for this incredible pot of money would be a deep-pockets enterprise that can put a credible product on the market and spend multi-millions promoting it sufficiently to negate Iomega's advantage in brand-name recognition. The window for such a potential competitor to take these actions will be open for 3-4 months more, at best. There are two enterprises that we know of, and maybe a couple more we don't, who may have the capacity to take such a plunge and may in fact be trying to decide whether they should. Given the above, does it make the best business sense to: a. brag about how much money you are going to make in 1999?, or b. let it be known that you barely expect to make a profit?

To: Senthil Sankarappan who wrote (6583)	1/24/1999 11:30:00 AM
From: Cogito	Read Replies (1) \| Respond to of 10072

Senthil - Re: 5% net margins They didn't say they would never make more than 5% in any year, they just said that for the year, they expected "middle single digit" margins. 1999 will be a year of new product introductions and manufacturing ramp-ups. If follows a year of negative net margins. I do agree that it would be good to see a more optimistic forecast in the short term. But I also wouldn't want to see Glore building a reputation as a hypester. BTW, my record on IOM could be a lot better. While it is true that I have made money overall on this stock, I have definitely left a lot on profits on the table by holding for too long. If I were another investor looking at my own posts for guidance, I'd probably conclude that I was usually too inclined to be optimistic. That's less true now than in the past, with respect to IOM, but I'm just an optimistic kind of guy. I will note that my WAG for this quarter was 6 cents, which I revised downward from an original WAG of 7 cents. So maybe I'm starting to get over the positive bias. - Allen