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Andrew, it occurred to me while I sat and watched IOMG go by on the ticker at 21 1/2, 22, 21 1/2... that people who pay to receive the Cabot newsletter are throwing their money away. Cabot says sell Iomega because its lost its momentum, well, Duh! If Cabot had issued a sell when the stock was at 40 what do you think they would be reccommending today? IOMG 24 1/8, 24 3/4, 24...
When I bought CSCO almost exactly 2 years ago I paid $24. This was down from $50 and they had good earnings, both expectations and realized. CSCO continued to drop to $20, a 60% drop in the face of rising expectations. There was much wailing and crying then but now it's at 54 after splitting 2 for 1. So even those people that bought at 50 are up 100% in 2 years. IOMG 22 1/2, 223/8. 22 1/2... 8 million shares traded and it's only 10:20! Somebody likes this stock at this price, maybe its just the MMs buying up everything.
The lesson I learned from CSCO is that the best time to buy quality companies with rapidly growing revs and earnings is when widows and orphans are crying, blood is running in the streets and doom and gloom has taken over the market. IOMG 22 7/8, 22 1/2, 22 7/8...trades aren't coming near as fast as they were.
I think people buying now are getting a very good price for a very good company but there is still downside risk for the near term. CSCO which had been moving down just prior to reporting good earnings continued to move down and didn't recover to my price until the next quarterly report. I think Iomega may do the same thing, hover around 22, maybe drop a little but will begin to pick up around the time of their earnings report in July provided the report is a good one!
Sorry about the way this post is formatted. I just can't seem to make it do paragraphs. Anyway, Good luck. Stan |
