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

To: StockMarketMaven who wrote (7394)	2/17/1999 12:37:00 PM
From: Ken Pomaranski	Read Replies (9) \| Respond to of 10072

The First Montauk analysis on Yahoo isn't bad, but it misses (or ignores) some very big issues. It doesn't discuss: 1. The ZIP can never really replace the floppy because SW isn't distributed on it. 2. In order to replace the floppy, ZIP MUST match floppy's price to OEMs. This will never happen without severly impacting Iomega's bottom line. PC makers are cutting costs like crazy. 3. Makes a VERY big assumption about the elasticity of demand on the disks. There is no supporting data for this. 4. Doesn't address the MAJOR drawback of CLIK!--> Cost for the OEM to include... What do you think the market is for $1000 cameras? Would a kid pay $200 more for a $20 gameboy? Who would pay $200 more for a $100 phone? The Clik! statements in the analysis are ludicrous, at best! 5. Mentions how Iomega must increase R&D and Advertising to increase demand and keep cutting edge products, but doesn't discuss the impact this would have to the bottom line. 6. Doesn't at all discuss the trends in the PC market to lower cost, less featured, internet 'appliances'. 7. Doesn't discuss impacts to bottom line of the ever increasing OEM percentage vs. retail. After reading it, I get the idea (IMO) that the writer doesn't fully understand this market. The only way to understand the market is to make a living off understanding the market! kp

To: StockMarketMaven who wrote (7394)	2/17/1999 8:11:00 PM
From: Bob B.	Respond to of 10072

Really liked the Montauk analysis, particularly the next-to-last paragraph analyzing why IOM's price is so low. I agree with them that this Glore-induced lull makes for a great buying opportunity. Over the past few days, freeing up all I can, I've increased my long position from 31,000 to 36,500 shares. I thought we hit bottom at 7 a couple of weeks ago, but have celebrated being wrong by getting more in the 6's. I'd anticipated this lull in the predictions I'd posted in the Yahoo board last November (though for the wrong reason - I thought the 4Q98 earnings might come in at .03 or .04). I stand by my 10/99 share price prediction of $30-35. Sales will be so strong this quarter, and so phenomenally strong for the following two quarters, that it will become impossible to "grossly underestimate" IOM's potential.