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Tuesday, December 30, 1997 Monday, Iomega closed at $12 3/8, up $1/16 (+0.51%). TODAY'S RECAP: A bit of news occupied the Iomega board for the majority of Monday -- ~Clay Hagan~ posted information that Apple Computer would be including Zips in all models. This sparked some debate (mostly positive) as well as responses on the overall status of the company. Other posters discussed Iomega's advertising strategies, while a few analyzed the financial history of the company, especially vs. other "loved" stocks (e.g., Yahoo). 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++ TMF Keeler shares a brief tidbit about institutional ownership.
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 12/28/97. 1+++++++++++++++++++++++++++
Subject: Re: INSTITUTIONS? << I am respectfully requesting that anyone out who has IOM institutional ownership information PLEASE post to this board, >> According to BusinessWeek the Instituitional Interest in Iomega as of mid-December was 20%. Last Summer, Iomega I.R. told someone who posted here that it was 15%. At this time last year the percentage was around 7-10%. 2+++++++++++++++++++++++++++
Subject: Re: Where are the ADS! I still want more ads on national tv and in the major magazines. Mail order catalogs only reach the people on the mailing list, most of whom are seasoned computer shoppers. They do not reach the new computer users that I believe Iomega should be targeting. These people need Iomega's name in the front of their mind when they gotshopping. Look at AMD and Intel. I bet you that most neophyte computer shoppers think that only Intel and Apple Computer (not Motorola) make computer chips. Now try to convince someone who has never heard of AMD to buy an AMD machine. It won't be easy... New buyers shop for "Intel" and "Windows95." "Priority placement" in stores is a subjective call. The local CompUSA had a pallet of PP Zips in the isle, but in the "regular section" Zips were mostly blended. At Best Buy, Iomega products get no special treatment. (...glad to say that the CompUSA PP zips were just about gone today.) It is nice to see Iomega product on TV show and in movies, but until Iomega is a household name, I think the product shots will predominantly be recognized by Zip owners. A recent episode of Seinfeld had Iomega and Gateway boxes on the set. Gateway's product shot was more effective, imo, simply because Gateway advertises all over the place. I am not asking for much. Intel's best ads come from other companies. Why can't Gateway put a "Zip inside" right along with the "Intel Inside" tag in their commercials? The way Kim Edward described the "big" ad compaign, I thought I would be seeing something along these lines. Nothing... only a full page WSJ ad announcing 10 million Zips. A consistant WSJ presence is needed too. Dell, Gateway, Intel, and Micron all advertise there and so should Iomega. I'd like a quarter page ad once a week. The argument about ads costing money does not stand well with me. Spending money on ads now acts as a barrier to entry for competitors. Though advertising could squeeze a bit out of the profit margin, it should increase both the top and bottom line. Since each drive sold is an annuity, future revenues are increased as well. When you think about the effectiveness of Iomega's advertising, it is imperitve that you keep the perspective of the neophyte computer user. Many of the people in this forum are very experienced with technology. Don't take it for granted. Most of us have our Zip drives. Iomega needs to find the people that don't know that Zip drives exist. 3+++++++++++++++++++++++++++
Subject: Re: Dogtags hhhmmm....Taking Stock segment on CNBC....guest: Ken Tower...v.p. of UST Securities A caller asked about CPQ....Tower's response was that more weakness in CPQ to be expected but offered the caller two other options in the same area: IBM and Iomega....both looked more attractive..... sounded good to me... I think I recall him saying that he looked more at charts rather than fundamentals.... 4+++++++++++++++++++++++++++
Subject: SOME "ANAL"ysts ARE YHOOS Please enlarge your screen because of the chart, thanks. Last week I posted "ANAL"ysts ARE YHOOS (because YHOO has 13, IOM has 5). I changed the subject to SOME "ANAL"ysts ARE YHOOS because some on the board got offended (I apologize). I just heard on CNBC that YHOO is up 495% since January 1st, and I really got peeved. Judging by the stellar profits of YHOO compared to IOM, you can see why YHOO is doing so much better than IOM (LOL). Here are some numbers for the last 4 quarters and I included EPS estimate for 12/97 for YHOO/vs/IOM. 9/30/97 6/30/97 3/31/97 12/31/96 TOTALS (4 qtrs.) 12/97 EPS est CURRENT PRICE YHOO EARNINGS ($mil) 1.64 .61 .21 .10 $2.56 MIL $68 EPS .03 .01 .01 .00 .05/SHARE .03
IOM (numbers are NOT SPLIT-ADJUSTED) EARNINGS 30.01 26.21 23.01 20.36 $99.59 MIL $25 EPS .22 .19 .17 .15 .73/SHARE .30 I always thought EARNINGS should be how you value stocks, I guess not. It must be the number of brokers which makes one company worth more than another (since YHOO has 13, IOM has 5). Iomegas earned 39 times YHOO's earnings in the last 4 quarters (39 times more). I really wish some intelligent analysts would take a serious look at IOM's numbers (including GROWTH). I'm sure if they did, more of them would initiate coverage. IOM's EPS for the year (according to First Call) is $.88 for the year (87% higher than last year) and IOM is only up 43% year-to-date. It seems, to me, like IOM's stock price is not appreciating relative to it's GROWTH RATE. I would appreciate any intelligent comments (is this microphone on???). 5+++++++++++++++++++++++++++
Subject: The BIG Mo: Apple to "Lead" the Charge Apple plans on having Zip drives in ALL models!!!! Reality News
http://www.macnn.com/reality/archives/122997/ from the link: << Zips In All Models? Enter "RainLine" Thanks to an industry source who would prefer to remain anonymous, we have some late breaking news on Apple's future with Zip drives. We were informed early last week that starting very soon, Apple will carry Iomega Zip drives in every model they offer. Due to the architecture of certain models such as the PowerMac 5000 series, where the casing will not allow the extension of such components, Apple will be developing a new internal/external casing, code named "RainLine". This is an intelligent move by Apple to lead the way of a new standard; the Zip disk standard. With the rise in high end multimedia, graphic arts and web design, the 1.4MB floppy has become obsolete for storage and transfer of such material. This is a plus for Apple's education markets for the same reasons stated above. After all, we need someway to transfer that creative content. Lets just pray Iomega fixes the problem with zip disks ejecting improperly when placed inside Apple enclosures. >> 6+++++++++++++++++++++++++++
Subject: Re: Where are the ADS! MBASpeak says: << I still want more ads on national tv and in the major magazines. >> I have a few thoughts on this subject... My husband, who's on a plane several times a week, says he sees Iomega ads all over the Inflight Magazines, as well as in Business Week. His opinion (as a professional marketing person, FWIW) is that Iomega is going after the corporate decision makers now. Reasons: Business-to-business advertisers looking for high reader-response, love the Inflight Magazines... they get business people at a rare moment of idle time when they're trapped on planes. My husband tells me that's the only time he really learns about a lot of the technology gizmos that are being targeted at business. He sees the industry reader-response numbers, and says the inflight books are at the top of the list. These travellers are circling the response cards, and filling in the name of their IS person to receive the advertiser's literature. Then they go back and nudge the IS people to check it out. Business Week is another good source. Again, his opinion is that Time, Newsweek, et al... are strictly hitting mass consumers - corporate decision makers don't read those mags for anything other than entertainment. They do read BW. 7+++++++++++++++++++++++++++
Subject: Re: ZIP in all Apples? from SI << Thanks to an industry source who would prefer to remain anonymous, we have some late breaking news on Apple's future with Zip drives. We were informed early last week that starting very soon, Apple will carry Iomega Zip drives in every model they offer. >> For anyone who might not have been aware, Apple is Iomega's largest OEM. According to an engineer I spoke with from IOM, "Apple is by far our largest customer." _______________________________ End Report. Posts covered through 9:00pm ET 12/29/97. _______________________________
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