Any info about Iomega (IOM)? Message Board

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

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To: Warren Gates who wrote (4614)	7/19/1996 1:59:00 AM
From: John Nordstrom	of 58324

If you annualize the quarter to quarter growth, you find that Iomega's growth rate is between 174% (based on sales growth) and 257% (based on earnings). That is, if Iomega continues to grow at these rates each quarter, it will have grown by 257% within a year. If Iomega can keep this growth up, this is phenomenal growth! I believe that this growth is sustainable for at least another year, probably for another two, and possibly for quite some time to come (if Zip becomes an industry standard). So whats my valuation of Iomega? Based on these growth rates - which don't seem to be aberrations - I would say that anything less than $45 be considered a buy. I won't even hazard to guess what tomorrows trading will bring. John P.S. if my math is wrong on the annualization of quarterly data, would someone please correct me. I derived the yearly growth rates by raising the quarterly growth by a power of 4. For the earnings this would be (1+ 0.375)^4 - 1 = 2.57, or 257%. But, hey, I'm no statistician.

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