Dueling Fools
February 25, 1998

Iomega: Zip for Zap

Is there a Zip Drive in the house? Twelve million PC storage seekers are nodding their heads, but what will tomorrow bring for Iomega <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: IOM)") else Response.Write("(NYSE: IOM)") end if %>? Will market dominance continue or is the fate of one of the most popular stocks in Fooldom in question?

Thankfully we have Pat Keeler (TMF Keeler) and Paul Larson (TMF Parlay) at opposite ends this week. Pat thinks the positives could fill up, well, a Zip Disk. Nay, a Jaz Disk. Paul on the other hand, despite being one of the earliest Iomega investors, is now decidedly bearish. Is there a Foolish pardon for heresy?

Wait no longer. The Duel you have been waiting for is here, check out the arguments and the rebuttals -- bask in the bipartisan freedom of equity debate. Then do the patriotic thing and vote for the winner.

You Get to Vote!

After reading all of the arguments, cast your vote for the winner of the Duel. We'll tabulate results each week and revisit them from time to time to see whether you were right! As always, we invite you to join us in the Iomega message board to continue the duel.

[Any suggestions, comments, praise, or flames, please send them along to the Dueling Fools Team.]

The Bull...
Since the first PCs were sold, they came with affordable rewritable removable storage. The first PCs used common cassette tape recorders, but poor quality and non-random access doomed them, and they were quickly replaced by the first disk-based products. With affordable, easy to use floppy disks, computer users could back up their work, swap software with other PCs, and archive files.
Continue...
The Bear...
My argument against owning Iomega centers on the viability of the Zip product going forward. Since Iomega receives the vast majority of its revenues from this one product alone, talking about Zip and talking about Iomega is for all practical purposes one in the same.
Continue...

Here Are Last Week's Rainforest Results:

RAINFOREST CAFE DUEL RESULTS

Answer Percentage
1. I can't make up my mind

3%

2. TMF Cinder's Bear argument

37%

3. TMF Edible's Bull argument

49%

4. They were both excellent

10%

5. They were both lame

1%