Iomega, Class Act or Class Action?:
A Continuing Study
Into How Iomega Treats
Its Customers and Employees

Play "Your Cheatin' Heart"!
Teensy smiley face.

(To kill the sound in MSIE, you may need to hit either
ESC or the MSIE Stop Button;
or maybe you'd like simply to turn your volume way down.)

Animated, rainbow, horizontal ruler.

Summary of "Zip zapped?",
a brief Forbes article
by
Caroline Waxler ("Streetwalker"),
(p. 426, 7 July, 1997)

Octavio Diaz' illustration alone -- of a fuming, mad, iomega zip drive, waving its arms above its "head" and jumping (up and down, I guess) with splayed legs -- is probably worth the approximate $6 ($US) or $7 ($Can.) you would need to pay (unless you frequent libraries, of course), to read the original of this pithy gem of an article. I have not taken the time to ask for permission from Forbes to quote the article verbatim, as I felt it best to give readers the chance to check out the original for themselves, after reading the following, quick summary (in which many details have perforce been omitted)!

With 1996 sales of about $1.2 billion, iomega corporation common-stock shares are up 18%. Some people think another meteoric rise in iomega stock prices is about to reoccur. Not so, thinks Streetwalker (Waxler's nom de plume), who sees "increased competition and slower PC sales"!

Without prior competition, the zip drive now faces off against rival LS-120, which has greater capacity than the zip and is also compatible with floppy disks!! [The LS-120 also lacks the baggage of public "bad will" that iomega now bears, as a result of the way it has treated its customers and employees, methinks. --SL, 7 July 1997]

Waxler also mentions that the iomega jaz drive has given so many problems with reliability that at least one company that was installing it has stopped doing so. In "April Iomega had to recall 75,000 cartridges; analysts reduced quarterly earnings estimates by 10%."

With current P/E at 23, one "money manager thinks these shares should trade at around 10." [This is in line with others who have suggested that iomega stock prices might soon resemble hat sizes. --SL, 7 July 1997]

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Return to July 1997 Correspondence

NAMES, ADDRESSES, & LINKS; PEOPLE AND GROUPS TO WHOM

YOU CAN WRITE

Perhaps the comment I need to make most often, when I read letters from people complaining about Iomega, is that it does no good for us to complain to each other. Please write to those in positions of authority, about such matters.

By the way, you might like to visit "Seatbelts for School Buses"

Thank you for your interest!

Sincerely, Steve Langford 

©Stephen A. Langford, Oro Valley, Arizona, 7 July 1997.  
ALL RIGHTS RESERVED.  
This document may be freely transmitted in its entirety, 
so long as no monies are earned during the transaction/s.  
Permission is required for any and all other pertinent circumstances.





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