Any info about Iomega (IOM)? Message Board

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

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To: J P Cross who wrote (6344)	8/21/1996 6:39:00 AM
From: Stan Walker	of 58324

JP, FWIW I ran the value point model again and I made the following assumptions: in 5 years the Zip would have 50% of the market and the Jaz would have 0%. This I believe would give sales of $3 billion or a growth rate of 25%. I used the same rate for earnings even though I think they would actually be higher due to economies of scale. Projected over 5 years this yielded an intrinsic price of $26.62. For those of you reading this and not familiar with the value point model, the intrinsic price is the price the stock should be selling at today, based on the model and the assumptions made. . . Truth is JP, this is about as bleak a picture as I can imagine because if the Zip can't capture 50% of the market in five years then it may never replace the 1.44Mb disk. And if the Jaz isn't being offered at all it will mean the the engineers at Iomega were unable to overcome the difficulties inherent in the Jaz. . . Oh well, none of this theoretical posturing has anything to do with the current price of IOMG, you may yet find your buyin point, but I wouldn't have believed it was possible. . . Regards, Stan

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