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Thursday, November 13, 1997 Wednesday, Iomega closed at $28 5/8, up $11/16 (+2.46%). TODAY'S RECAP: Yesterday was another "large" news day for Iomega, and the message board was abuzz with it all. Specifically, IOM announced a 2-for-1 stock split AND the shipping (in limited quantity) of the laptop Zip drive. Other news of note included an insider sale of stock and the announcement of a press conference today of Iomega and others ("world leaders in photography, printing, imaging, computing and semiconductors"). Enjoy! 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++ AubreyPup with a brief note on the online Apple store and internal Zip
sales.
Recap written by TMF Weekly; posts
compiled by TMF Weekly. As always, the following posts represent the thoughts of our contributors, not those of The Motley Fool.
And now, the Best of the Board...Started 9:01pm ET 11/11/97. 1+++++++++++++++++++++++++++
Subject: Apple BTO online sales and Zips No exact figures are known yet obviously, but it probably means alot of Iomega Internal Zips sold... The online store has Zips & 3.5 floppies as the default choice on most machines. << Apple's On-Line Store Sells Half a Million Dollars in First 12 Hours CUPERTINO, Calif., Nov. 11 /PRNewswire/ -- Apple Computer, Inc. (Nasdaq: AAPL - news) today reported that its new on-line Apple Store received over 4.4 million "hits" and booked over $500,000 of orders during its first 12 hours of operation. The e-doors to the Apple Store (www.store.apple) were first opened at noon PST yesterday. "We're thrilled by this immediate customer response to our Apple Store and new G3 computers," said Steve Jobs, Apple's interim CEO. "Apple is really 'thinking different' about the way we do business." >> Jobs knows his stuff. Check out this site to see how many G3s and 9600s, 8600s, and 6500s have Zips as defaulted choices. http://store.apple.com/1-800-795-1000/WebObjects/AppleStore 2+++++++++++++++++++++++++++
Subject: Re: Insider sells... markrogo said: <<... they two must feel they know the stock is not likely to trade higher soon ...>> Mark, I think you are about to be proven wrong about these two feeling the stock is not likely to trade higher soon. I am convinced that the insider selling is meaningless in relation to the stock price trading up or down from here, although my instinct is honestly seeing a move up over the next week or so. The insiders at Iomega have obtained large amounts of stock in place of large salaries over the last 2-3 years as Iomega has implemented it's plan. Insider sales are going to happen here for awhile until a natural balance is acheived. Kim got a nice pay raise in 1997 but until then he was working for CEO peanuts as far as cash compensation goes, the cash was instead better used to help grow the business, because the management team was willing to risk early fat salaries on their abilities to excel and grow a monster business they were rewarded with a pile of stock options, now that they have achieved a strong business foundation they are able to cash-in and collect the rewards that their dedication and talent made possible. Begrudge them nothing and don't lost focus of what they achieved here. Insiders at Iomega are going to take some of the reward they are due and I expect we'll see some selling on a routine basis from here on out. What we have as stock owners is a stable and rapidly growing business that has and is and will continue to reward us all. When Iomega passes 55 again everyone who ever bought and held this stock will be seeing blue skies, until then watching the basics is a sure way to see and realize that it's coming. In my opinion seeing Iomega insiders selling as a negative is misguided and short sighted on our part, these guys have worked hard to build what they have built and I think that realizing some of that reward is more then natural. For myself if I thought IOM was going to see lower prices because of this news I still wouldn't sell at this point, and with the news we are expecting in the very near future I doubt that IOM will trade lower at all, sorry i'm not a trader, i'm a long term owner who sees the near term future as being bright and the longer term as being fantastic. 3+++++++++++++++++++++++++++
Subject: LOOKS BIG TO ME! Wednesday November 12, 8:12 am Eastern Time Company Press Release ADVISORY/Iomega and Leading Photography, Computer and Chip Companies to Hold NYC Press Conference Thursday Morning WHO: Kim Edwards, president and CEO of Iomega Corporation and world leaders in photography, printing, imaging, computing and semiconductors. WHAT: Press Conference to unveil a significant breakthrough for digital cameras, hand-held personal computers, imaging and other portable digital products. FORMAT: Executive Presentations Product demonstrations Reception to follow with opportunities for executive interviews WHEN: Thursday: 11:00 a.m. to 1:30 p.m.EST WHERE: The Rainbow Room, 30 Rockefeller Plaza New York, NY 10112 4+++++++++++++++++++++++++++
Subject: Re: Purkis sells 63K shares IraS writes: << It looks like Purkis is selling everything he currently can >> Ira, Assuming that your math is correct, we know that the last time someone sold out all their shares they left the company...Tim Hill. Since Purkis is CFO and has the responsibility of communicating with Wall Street, and Wall Street has been anything but enthusiastic about initiating coverage of this company, then I would not consider it a bad thing if a CFO change was in the works. Just my speculation. The sale by Edwards is different than that by Purkis, since Edwards announced only a fraction of his total shares, and such a sale can be made for many reasons...but if your math is correct, then selling out all the shares may be a horse of a different color. Eric Turkewitz 5+++++++++++++++++++++++++++
Subject: Re: Latest News 11/12: IOMEGA <IOM.N> SAYS SETS 2-FOR-1 STOCK SPLIT 6+++++++++++++++++++++++++++
Subject: Stock Split As we all know, a stock split adds nothing to shareholder value...it doesn't matter if you own 100 shares at 30, or 200 shares at 15, or one share at $3,000...it is still $3,000 worth of the stock. Your percentage of the company does not change. Any excitement over a stock split is fleeting, as it means nothing. To me it is just a holdover from the time it cost extra to buy odd lots (non-100 blocks) from a broker. With the advent of discount brokers though, this has been rendered moot. When the company split the stock twice in succession in 1996, this almost became a penny stock. That is a concept I would not like to see repeated. I'd be happier if they just let the stock run, to 50, 75, 100...wherever it may go in the months and years ahead. Eric Turkewitz 7+++++++++++++++++++++++++++
Subject: Re: Stock Split << As we all know, a stock split adds nothing to shareholder value...it doesn't matter if you own 100 shares at 30, or 200 shares at 15, or one share at $3,000...it is still $3,000 worth of the stock. Your percentage of the company does not change. Any excitement over a stock split is fleeting, as it means nothing. >> Actually, Eric, a stock split, much like insider selling, can be considered a signaling device (and, as I suggested, a company can remove the "signaling" aspect of insider selling by having its directors always sell during the windows (even if token amounts to keep the continuity up), eliminating "timing" concerns on the part of shareholders. Many company execs. do this). The "signal" -- with a split -- is that the company believes its stock will appreciate or will keep current levels as few companies like to see low, low stock prices. << When the company split the stock twice in succession in 1996, this almost became a penny stock. >> That gets back to the maintenance of current levels. The second '96 stock split was, IMO, a mistake for that very reason. That said, however, many companies (Buffet springs to mind as does American Airlines and Wells Fargo) don't like to split their stock. They like the $200+ stock prices (much higher for the Wizard of Omaha, of course). You are right, however, that literally a stock split does nothing for shareholder wealth (just as some argue dividends, depending on the tax status of the shareholders, also don't change a company's valuation -- though that has changed with recent tax law as the cap. gains and ordinary income brackets have widened). Its value as a signaling device, however, does exist (like dividends). Dunn, however, did seem to indicate a specific purpose (hard to give employees 7.2 shares) for the split in what seemed to me (opinion and speculation) to be a downplay of any "signal." And for those who believe it was the stock split that "triggered" the stock price rise two Springs ago, I would suggest that another and more accurate "signal" acted -- along with what seemed like the market makers inclination to trigger short calls -- to trigger the rise: the convert. deal. Companies, by setting conversion prices, targets, and calls, give an excellent indication of where they expect their stock to be in the future. My $.02. I'm neither here no there on the stock split. Tomorrow's long PR conference, however, does how my interest piqued. I suggested many moons ago that n.hand would succeed or fail by the products in which it is included. Why? It is merely a piece of a product, like an Intel CPU (which, fortunately for Moore and Grove, got included in the IBM PC). Its sales are dependent on the sales of its "mother" product. If those "mother" products are hits, from good companies, then n.hand will do well, along for the ride. I don't believe n.hand itself can completely sell a product (i.e., a poorly designed digital camera, with poor resolution, bulky, and low battery life) that is itself not up to par. Therefore, I patiently await what seems to be our first glimpse of these products. I will especially be looking for (if announced) prices on these products as I'm unsure what type of "premium" these companies will be asking. I actually hope that there is NO price premium between say, a mid-range digital camera without n.hand and one with. But that is getting ahead of ourselves. See ya tomorrow. _______________________________ End Report. Posts covered through 9:15pm ET 11/12/97. _______________________________
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