Any info about Iomega (IOM)? Message Board

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Non-Tech : Any info about Iomega (IOM)?

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To: Rocky Reid who wrote (23679)	5/31/1997 3:34:00 PM
From: Paul Angell	of 58324

Rocky, <<IOM will attain a PE of 18-20 soon. Meanwhile, while IOM sits here, other stocks with street support continue their march upward.>> You are inferring here that earnings will increase by 50% this next quarter. I agree with the inference. Now let's start thinking strategically. IOM's present sales are increasing, future price cuts to ensure market saturation are already built in and they are building a track record with their new plant in Penang. It is likely that their costs will not rise as fast as their earnings due to economies of scale. All these things indicate to me that the stock is undervalued and will start to attract attention any time. IMHO, the risks do not lie with the market for IOM's products but rather with Wall Street itself. Restructuring in Corporate America is all but complete. In previous years there were spare skilled workers to support growth. Now this is not the case and the labor market is tight. The biggest threat we all have is the threat of wage pressure and inflation rasing rates and dampening this upwave. Paul.

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