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

To: HRP who wrote (7065)	2/5/1999 11:27:00 AM
From: Cogito	Respond to of 10072

HRP - Re: your concerns about Scott Flaig's presentation at the Emerald Research Ground Hog Day event. You mention his statement that "We expect our operating model to hold in 1999, from quarter to quarter may be below or above our model due to seasonality and constraints." You ask whether this means that the company might not meet expectations for the rest of the year. I think it's important to distinguish between the company's model, or internal revenue and earnings projections, and analysts' estimates. Flaig was saying that they might come in below or above their own quarterly goals, but would be on target for the year as a whole. I believe that is not the same as saying they'll miss quarterly estimates, and I find the message reassuring. You also said that you don't believe concerns about making numbers for the rest of this year aren't already priced into the stock. I suppose there's no way of knowing this for sure, but I believe that they are. For one thing, it's clear that the current management is giving investors better guidance. Over time that has to be a good thing. There will never come a time when there are absolutely no "concerns" going forward. Currently, I find that there are a lot more positives than negatives in the picture. Improvements in the balance sheet indicate that the company is in no danger of running out of operating capital. Improvements in processes, as demonstrated by higher inventory turns and reduction of operating expenses, along with new products already introduced and in the pipeline give me reason to believe that the situation will only get better this year. Of course, the future is always unknowable. We'll have to see what develops. I do believe that it's a good idea to keep an eye on this company. It's good to have concerns. - Allen