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

To: D.J.Smyth who wrote (8138)	3/10/1999 7:33:00 PM
From: HRP	Read Replies (2) \| Respond to of 10072

Darrell, I also agree that IOM may get to $3 again. And, that there will be a price at which IOM will afford an excellent buying opportunity. But, when will that price be reached? 1. The percentage of new PC's priced at under $1000 is substantial and increasing (believe in excess of 60%). These PC's are less likely to be sold with Zip drives. 2. The percentage of Zip 100 drives that are included with new PC's continues to increase thereby eating into profit from after market sales of Zip 100 drives. 3. I believe Iomega can not show a profit in Q2 and Q3 without significant new revenue from Click drive sales. 4. Iomega said that supplies of Click drives and Zip 250 MB media will not be constrained after the first quarter. 5. That apparently will not be true - at least for Click drives. Like many others on this thread I have held IOM while its price dropped and continued to hold while the price recovered. This time I have shorted IOM and expect to remain short until Click drives start showing up in volume. It is possible that Iomega will preannounce in April. Since supply constraints continue with three weeks left in the quarter, there may be less revenue during the quarter than expected when the last conference call was held. And, (1) if Iomega doesn't preannounce and (2) supply constrains are not sufficiently ameliorated by the time of the next conference call, Iomega may be forced to reduce expectations for Q2 during the next conference call. Again, at some point we can expect a strong recovery - but when? hrp