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Driven By New Iomega Optimism

November 06, 1998|Bloomberg News

Iomega Corp.'s long-depressed stock has jumped 69% since new Chief Executive Jodie Glore bought 15,000 shares a week ago, as investors bet that the disk drive maker will benefit as its main rival faces serious struggles.

Glore, hired Oct. 22, bought the shares a week later at $5.31 each, for a total of $79,650, according to Washington Service, which tracks insider trading.

Shares in Roy, Utah-based Iomega rose $1 to close at $9 on Thursday on the New York Stock Exchange.

Rival SyQuest Technology Inc. said Monday that it had suspended operations and might file for protection from creditors in U.S. Bankruptcy Court.

"It's just a matter of general excitement" about Glore's arrival and SyQuest's woes that has carried most of the share increase, said Joseph Besecker, an analyst at Emerald Research who rates Iomega a "buy."

Besecker also said investors are optimistic that Iomega will introduce a product at the Comdex trade show in Las Vegas later this month.

Besecker said the company may have a higher-capacity drive or one that can be used with digital cameras.

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