Post of the Day
March 17, 1998

From our AOL
Iomega Board


Subject: sober
Author: Its Kevin

What can I say? I'm bummed. January's disappointment was worse, unexpected as it was, but today felt like a little more air let out of the balloon.

In tonight Fool Port recap, David Gardner said something to the effect that your losers start to take up less of you portfolio as they decline -- which is good. I found that out today. The last decline had a significant effect on my account. Today's was still noteworthy, but not huge. It's strange -- I become less sensitive to the decline in this one stock the more it falls. Ironic, huh?

I hope this point isn't illustrated for me again and again over the next year. I miss the rush that the stock used to give me, or the hope of near-term gains. Maybe that was part of my problem.

I'm still going to hold the stock and the company for the indefinite future. I believe in its products, the technology, the brand. I work for a college admissions office, and we started using zips, primarily for backup, about a year ago. That was a big indicator for me that something was going on. We don't usually adopt new technology until it's a proven success. I liked the look and feel of zip immediately. It was somehow sexy. I have to admit that's a strange word to use to describe removable storage, but that's what I felt. It was cool, hip, powerful. (A nod to Iomega marketing and design.) It's also comforting to know that clik! is on the horizon -- a much-anticipated new technology, one that Bill Gates saw fit to include in his very selective highlights of Comdex -- and that Iomega can leverage the name it has built up for itself to sell clik! and future, as-yet-unknown (to us) technologies.

I wish I could say that I also believe in management. I did believe in them. Through last year, I liked what I heard KE say again and again in subsequent conference calls -- that the company was building a solid corporate foundation. That they were foregoing "flash" for substance. I thought this was going a long way to mitigating the negative feelings that had been swirling around the stock and company since the great ascent and decline in '96. And then last quarter -- hype, hype, and more hype (I know we're all sensitive to that word around here, but it's appropriate in this instance, I believe) about the coming of clik! and the stock split, etc., all within a short period. Every announcement was followed quickly by another, a breathless series of apparently good news out of Roy. I could kick myself now, because I had just opened a Roth IRA in January and I thought, hey, KE has so much faith in this company right now, I might as well invest more $$$. It wasn't much money in the grand scheme of things, and I do accept full responsibility for my own investing decisions, but it still gets me.

Anyway, I'm rambling. The long and short of it, no pun intended, is that I will hold. But I will not add. And I will cast a skeptic eye toward managament from this point forth -- not disbelieving or hostile (or litigious), but questioning.

Kevin


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