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Thursday, November 21, 1996 Iomega was down $1/2 Wednesday, closing at $22 (-2.22%). TODAY'S RECAP: Word came Wednesday of more insider sales from prominent Iomega shareholders. Many in our folder found this news troubling, and the debate raged all day long whether those sales were a sign of problems to come, or merely some innocent option-related trading by young Iomega executives out to nail down some well-earned profits. Favoring the latter explanation was a Dow Jones story in which "an outside spokesman for the company" explained the trades as options sales, and that "investors will understand that people want to diversify their holdings." Meanwhile, Iomega picked up another accolade: the Jaz drive was named "Best Computer Accessory of 1996" by consumer electronics advocate Andy Pargh, alias "The Gadget Guru." INDEX: Use the Search or Find feature of your word processor to locate the article number (Find: 1++, 3++, etc.) -- or use AOL's Edit>>Find in Top Window Feature. If Find in Top Window is dimmed, just click on some text, anything, in the IOM Today window and try again.
1++Corinne45 reports recent SEC filings of insider trades. And now, the Best of the Board...Started 3 am ET 11/20/96.
1++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Huge Insider Selling of IOM Date: 96-11-20 09:35:45 EST From: Corinne45
SEC Form 144 Filings (applications for insiders to sell stock)
11-12-96: Radman Fmily Revcable Trust, Radman, Trstee / Tony Radman: Sr. VP Sales & Mktg Filed to sell 450,000 shares [at approximately $23.0000/shr = $10,350,000]
11-8-96: Edward D. Brisco / Vice President Sales Filed to sell 96,000 shares [at approximately $24.3750/shr = $2,340,000]
11-8-96: Edward D. Brisco / Vice President Sales Filed to sell 303,000 shares [at approximately $24.3750/shr = $7,385,625]
11-7-96: Radman Charitable Trust, Martin O. Link, Trustee / Tony Radman: Sr. VP Sales & Mktg Filed to sell 66,041 shares [at approximately $25.3750/shr = $1,675,790]
11-7-96: A&R Chrtbl Annity Trst / Tony Radman: Sr. VP Sales & Mktg Filed to sell 129,052 shares [at approximately $25.3750/shr = $3,274,695]
11-4-96: John R. Meyers / Director Filed to sell 50,000 shares [at approximately $21.1250/shr = $1,056,250]
10-28-96: The Honorable John E. Sheehan / Director Filed to sell 30,000 shares [at approximately $21.6250/shr = $648,750]
10-25-96: Faily Perscilla / Shareholder Filed to sell 40,000 shares [at approximately $22.2500/shr = $890,000]
10-25-96: Leon J. Staciokas / Sr. VP & Chief Internal Operating Officer Filed to sell 100,000 shares [at approximately $22.2500/shr = $2,225,000]
10-24-96: Timothy L. Hill / VP Marketing Filed to sell 253,000 shares [at approximately $22.5000/shr = $5,692,500]
10-23-96: Faily Perscilla / Shareholder Filed to sell 40,000 shares [at approximately $23.3750/shr = $935,000]
9-16-96: The Honorable John E. Sheehan & Jean Sheehan / Director & Wife? Filed to sell 35,000 shares [at approximately $14.4375/shr = $505,313]
9-16-96: Donald R. Sterling / VP Corporate Counsel & Secretary Filed to sell 78,264 shares [at approximately $14.4375/shr = $1,129,937]
9-16-96: Willem H.J. Andersen / Director Filed to sell 75,000 shares [at approximately $14.4375/shr = $1,082,813]
9-13-96: Donald R. Sterling / VP Corporate Counsel & Secretary Filed to sell 78,264 shares [at approximately $14.5000/shr = $1,134,828]
Total shares filed = 1,823,621 [totaling an approximate weighted average of $40,326,499] 2++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Insider Selling Date: 96-11-20 11:03:39 EST From: Ken1Marcus
I posted previously that I expected more insider selling, since it normally comes in waves. So, we have some more. Not unexpected, this is the first time period since the secondary that they are allowed to sell.
Ken 3++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Catalogue Date: 96-11-20 12:07:07 EST From: MF ETurkey
From Global Computer Supplies. . .
I received this catalogue in today's mail and was surprised to see. . .
- 4 pages of solid ads running from page 3-6, plus an additional full page (p.9)
The first was an iomega ad showing a whole bunch of buttons and talking up Zip, Jaz, and Ditto.
The next three had one page each for each product. (And the last was a Johnny crashed his hard drive Ditto ad)
- Also, in the back, all 4 kinds of Zip disk are advertised - iomega, Maxell, Sony and Fuji.
Sony was undercutting the price of the others. For 10 or more disks, the price is $13.95/disk, a buck cheaper than the other three.
I mention this because I have never seen advertising this extensive before. While I know it will be more extensive for the season, what is surprising is that it is more extensive relative to other products being sold...including scanners, modems, and any other hardware.
Eric 4++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: New Patent Date: 96-11-20 12:52:34 EST From: IAmErgoSum
It's very rare when I beat other Fools to info. but I think I found a new patent granted to IOM yesterday 11/19/96. Here's the scoop:
<< United States Patent D375,728 Nicklos, et. al. Nov. 19, 1996
Front panel of a computer data storage device Inventors: Nicklos; Carl F. (Ogden, UT); Brawne; Nicholas (Columbus, OH). Assignee: Iomega Corporation (Roy, UT). Appl. No.: 043,144 Filed: Aug. 25, 1995 U.S. Cl.: D14/114 Current U.S. Class: D14/114 Field of Search: D14/100, 107, 109, 114, 102; D13/184, 199; 360/97.01-99.12; 361/600, 622, 627-36, 679-87, 724-8
<SNIP> Primary Examiner: Tung; M. H. Attorney, Agent or Firm: Woodcock Washburn Kurtz Mackiewicz & Norris
Design Claims
The ornamental design for a front panel of a computer data storage device, as shown and described. 1 Claim, 6 Drawing Figures 5++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Re:Insider Selling Date: 96-11-20 19:04:54 EST From: DR IMBECIL
<<Subj: Insider Selling Date: 96-11-20 18:41:00 EST From: Cynicalguy
Did Kim Edwards sell any of his shares? No. >>
And what if he does? What's wrong with a little profit taking here and there.
I am more concerned with insider selling in troubled companies (VJET) and small and mid caps that haven't posted a favorable earnings quarter and seem to be true "story stocks." While we all know insider selling can herald bad news, has anyone found any criteria yet that qualifies insider selling. Sure I can check Vickers, but I can't get a complete screen listing other fundamental and historical characteristics that surround a likely "bad news is coming" insider selling scenario. Anyone know when insider selling has been positive? Which are the largest blocks of inside selling that heralded good news?
What? No answer. Meaning no one here is really all that "up" on insider selling. 6++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Re:insider Date: 96-11-20 19:06:08 EST From: MUHNEY
Regarding insider selling... Since I help people sell 144 stock for a living maybe I can shed some light here. First it takes an average of 6 weeks to complete a sale on 144 stock. The employee needs to apply...or notify his company of the intent. The corporate attorney's do the SEC filing which seems to sit at the SEC for several weeks before approval. After SEC approval the company then re-issues stock to replace the 144 stock ( most of the time through the transfer agent) The employee then delivers the stock to his brokerage firm to sell. If this stock is in the form of options, they must first be exercised (usually on a cashless basis through a margin account) and then the stock is sold. It usually makes sense to sell a good portion if the stockholder has to finance this transaction because of the margin interest expense. It appears that IOM recently had restrictions lifted off a number of employee held options for this to occur all at the same time with various 144 stockholders. For most of them and from my experience it makes good sense to sell, they will receive additional options throughout their employment with IOM. And if you had a net worth of say $5,000,000 and had 95% in one stock it would certainly make sense to diversify. I am sure you all have your opinions on whether this news of officers selling stock is good or bad....my experience tells me...it's no big deal. And it happens all of the time. Sorry to rain on some of the Doomsdayers parade. Regards... Muhney 7++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Web Buddy Date: 96-11-20 21:16:00 EST From: Arentz65
I spent much of the day searching the web for info and it really hit me how powerful the combination of Internet Robots such as Web buddy or Web Whacker can be when used with the Zip(Remember the two press releases from monday).
When you come across sites of a business you are researching you could use one of these programs(called robots) to download the entire site. That would have saved me a heck of a lot of time today. Also when you use Web buddy to down load a site it keeps the formatting of the pages intact which you can then read with your browser. No more text files that have no links, graphics and which can be hard to read after many pages. Also using one of these programs is simply easier than doing it yourself. First you have to Click on one link, wait for the page to load, then save to disk(often times leaving graphics and tables behind), then you have to backtrack hit another link and repeat the cycle over and over again. I must have done this dozens of times today.
Being able to down load directly to a zip would be great. No more cluttering the HD. an entire site can run from as low as a couple Mbs to dozens of Mbs. So they definitely won't fit on a floppy. :) By putting them on a Zip you not only eliminate filling up your HD but it offers easy compartmentalizing of your info. Put several sites on one disk and update as desired. As new information is added to the site you just update that original disk. All the links remain along with the structure of a site. You just browse the site like you would if you were online.
The doomsayers say this 'stock' is dead, there wrong. The stock is wounded but unless the company dies the stock won't. Iomega just keeps building the business. Adding these small steps are very important overall. These small utilities have not gotten enough attention on this board. They are not flashy and don't seem to add to the revenue growth of the company. But what they do Is make computing easier and more convenient.
So I am not Invested in a stock, I am invested in a company, a company that continues to show that they understand computing and how to make the jobs i do easier. I can wait for the market to realize iomegas superior value.
I should add that the rebate program going on that offers a game pack or $50 for a zip drive purchase also offers with the purchase of a gig-pack a software bundle containing 2 caddies, Fetch(a multimedia catalog utility) and the Web Buddy software. I am definitely going to be buying that gig-pack now.
Eric 8++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Re:Option related Date: 96-11-20 21:37:25 EST From: BurtskyH
<<Iomega's compensation is driven towards options, and most of the recent sales involve options, said an outside spokesman for the company. He believes that investors will understand that people want to diversify their holding. >>
Just to clarify this options stuff, and because I'm feeling so prolific tonight :), here's the deal:
Tim Hill sells 240,000 shares. If he has options to buy 500,000 more shares at some low price, then (1) The sale is no big deal (2) he still benefits a ton if IOM keeps going up (3) he doesn't have to actually exercise the options & own the stock outright to benefit from any moves up (4) normally options to buy company stock don't expire until 10 YEARS after the option grant (5) he will probably be granted more options in the future, albeit at the higher stock price (6) does anyone know if their options grants (for directors, etc.) are public info that we can find out?
Burt 9++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Re:Insider Selling Date: 96-11-20 22:08:31 EST From: BOSS BENNY
As for the insider selling, there may be a few stocks with exception, but for the most part you can bet that when a dozen or so insiders sell within a short period of time while not one is buying, then the stock is invariably going to fall. Period. See what happened to AMTX when 11 insiders sold at $35 back in June or when 15 insiders sold their SIII earlier this year at $24. Both had the same telltale signs, 10 or more insiders selling, no buying, all within a short period. You don't have to be a rocket scientist to figure this one out. 10++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Re:Huge Insider Selling of I Date: 96-11-20 22:10:28 EST From: Bil1020
Insider selling isn't important unless it is for reasons of deteriorating conditions wherein the company management is afraid that they will not be able to meet earnings expectations and the stock prices will drift downward. With IOM, the story is not this at all. Expect a significant gain in sales and profits over the past quarter. Many of these company officers are young, and essentially all of their wealth, in many cases consists of stock in their company. There is also a small window of time that they are allowed to sell, essentially after earnings report, and before they are far enough along into the present quarter to have significant insider knowledge of next quarter's performance. Many choose to sell some shares after they have had a significant increase in share price, and diversify their portfolio, which is prudent. Many of you with only superficial knowledge, hastily jump to an ill-informed decision that all insider selling is associated with impending company failure and doom. This is absolutely not the case. Many of you, particularly shorts, perpetuate this falsehood, and use it as a scare tactic, which is a rather crude behavior. Anyhow, don't sweat the small stuff.!! :) bill. 11++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Re:Insider Filing Date: 96-11-21 00:23:47 EST From: BCCzz
>>it beats me how people can not take this most seriously. whether you wish to grant it or not, they have the better grip on information. <<
I've examined a lot of insider trading in other stocks and what amazes me most about IOM is how little selling there has been over the last 2 years. While I don't like to see selling there are lots of high tech stocks that go on to double and triple under heavy insider selling. At any rate If one is going to paint this as a case for selling IOM you better examine all the information and not just the superficial info I've seen posted so far . Are a large percentage of major insiders are selling?, are most of there holdings are being sold?, how predictive have their past sales been?, is the CFO selling heavily? etc. 12++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Re:Insider Selling Date: 96-11-21 01:06:05 EST From: MF Jeanie
A good point, BurtskyH... and one I'd like to take a stab at.
<<The only thing that would relieve my concerns over this would be if I knew that these sellers had LOTS of other options granted or other shares held long, and that these sales were not a huge % of their holdings (or potential option related holdings).>>
You can't exercise any options until such time as you are vested. This is usually done over a 4 to 6 year period. And usually doesn't begin until you've been with the company at least one full year.
So let's take the best option plan -- 1mm shares vested over 4 years -- That means on your 1st anniv. you are 25% vested. You can exercise 250,000 shares at that time (presuming no lock-out periods are in effect -i.e., pre earnings, post secondary, etc. )
But you don't do it. Instead you wait for Year 2. Now you are vested in 50% of your options. It's time to take some money off the table. You exercise and sell most of it all at once in the window available to you.
How is that sale going to be reported? As having sold your "entire holdings". Why? Because until you are fully vested, you don't technically "own" that other 50% yet. Please read that sentence again.
If you resigned now you would kiss it goodbye. It's similar to quitting a company before your 401k plan has fully vested. You can leave only with what you contributed but not all of what your employer contributed.
So... in a legal sense, you have sold all your holdings... all the ones you "own" now,that is... but if you stay, you would still have another 250,000 shares next year and the year after to look forward to. 500,000 more shares coming to you over the next 2 years, if you stay. Kind of a golden handcuff.
All of the above is pure speculation, of course. But it's as reasonable as any other without the facts.
Jeanie 13++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Exec compensation ?????????? Date: 96-11-21 01:08:10 EST From: Cyburghguy
I closed out my bullish positions in IOM based today based on the news of the most recent insider selling 450,000 shares from his position.
The important fact wasn't that he chose to sell, or his particular reasons - I don't care.
I am more concerned about the lack of financial responsibility of IOM to its investor shareholders for a firm that 'rewards' its corporate officers with this magnitude of a stock option bonus. This is over $9,000,000 in stock. (I understand of course he paid something in order to exercise the options.)
I guess I don't feel comfortable owning a company where all the senior management are instant multi-millionaires.
If IOM meets or exceeds all our expectations with its products but is (figuratively) running the printing presses churning out new employee option shares, what is the upside for investors like us. Think about how many zips do you have to sell to pay off the compensation of just this one officer.
Maybe this explains why one of the biggest success stories in consumer electronics history is only earning pennies a share (per quarter). The fully diluted outstanding shares must include a lot more employee stock options coming due.
On the sidelines for now... Steve Tessier 14++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: Re:A Message for KE Date: 96-11-21 01:13:47 EST From: CyberVster
To Area 51
If you compare IOM to any, ANY other stock over the last 24 -36 months IOM is a bragging rights stock of rare quality. I imagine Edwards is quite a celebrity at these dinners. In another 24-36 months I expect those who still hold the stock will be very pleased with themselves. Kim Edwards has said "The stock will take care of itself" He has proven that he can deliver, he has been honest to a fault from day one, he has what it takes to build a world class business. I see the evidence and I am pleased that I own a part of it.
Thank you Kim Edwards.
Edwards is an entrepreneur, and as such I expect that when the job is done to Edwards satisfaction he will move on. I do not know him at all, but he may be a turn around wonderkind, I will watch his career for a long time. After all he has two big winners under his belt already.
I think he will stay at iomega for 3-5 years, if he stays longer I would probably begin to wonder. People with his drive and talent do not always thrive in big corporate environments but let me assure you, he is in his element now. Iomega has a long way to go before it is a mature company, if you track the history of other market leaders you cannot miss the pattern, IOM is a great risk/reward investment.
My long term prediction, IOM will have 1.5 billion shares outstanding and be trading at $75-$100 per share before the year 2010. Edwards will be swapping war stories with the other big guns for years to come. Actually, few of his peers will be able to compete.
Short term, 1.2 times 97 sales estimates is rock bottom, so Im waiting for the updated estimates to arrive. Emerald Research where is that 20 page report you promised weeks ago!
Mark
<<<From: To area 51
Maybe he need someone to be honest with him. WE OWN THE COMPANY!! It's spotlight time, If I was going to dinner with the "Big Players" , everyone is laughing and saying how well their stock was doing the last month, frankly, I would excuse myself and go to the bathroom. He has one duty, Increase shareholder wealth both short term and long term - period.>>> 15++++++++++++++++++++++++++++++++++++++++++++++++++++++ Subj: New Iomega Office in Texas? Date: 96-11-21 01:27:16 EST From: Norp201
It was posted a few weeks ago that someone heard a rumor there was a new Iomega manufacturing plant in Nacadoches Texas. I have an old girlfriend living there and asked her to check it out. She called today and told me that according to the Chamber of Commerce there IS a new Iomega office building in Nacadoches, not a manufacturing facility. The Chamber of Commerce rep said that Iomega recently had a ribbon cutting ceremony for the new office which she said was small and most likely only employed 20-30 people. The office is now open.
I don't remember hearing any news about an office in Texas and it seemed a bit odd that they would open such a small facility in rural Texas?? Does anyone have any info on this new office or care to guess what it might be for? Just curious- Norp
End Report. Posts covered through 3 am ET 11/2/96. _______________________________
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