Any info about Iomega (IOM)? Message Board

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

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To: Gary Wisdom who wrote (47100)	2/7/1998 8:52:00 AM
From: John P. Henrie	of 58324

RE: AOL vs IOM Stock price performance over the long-term I was just on Microsoft Investor and decided to do a chart that compared IOM's percentage stock price change to AOL's percentage stock price change. I saw some very interesting things. When comparing each stock's percentage price change over the last three years, AOL pales in comparison to IOM (even at IOM's current price level). In fact, IOM blows out every major stock index. Its short-term price movements have been very volatile causing a great number of people to make or lose a great deal of money. But the long-term investor who saw the real IOM story when it first began has done very well. And quite frankly,it has been the long-term investors who have been constantly criticized for their investment in IOM. The question one must ask now is where will the next chapter of IOM's story lead. Price to earnings and price to sales are reasonable even when considering moderate revenue and earnings growth. The next couple of quarters will surely indicate whether the current multiples should be held, raised, or lowered. Given the last conference call, I am a bit weary. But given the ground work that has been laid, I am comfortable with watching the next couple of quarters before making any decisions. What about AOL? It has had quite a run. It was one of my wife's picks in a a NH stock contest and contributed nicely (she finished 4th). What is left for AOL? Beyond the momentum (which can leave at any time), AOL is facing considerable odds. Look at AOL's trailing and forward PEs. IOM's highly criticized PE's of yesteryear don't even come close to AOL's. And its my understanding, that AOL's profitable operation is largely dependent upon advertising revenues. A large portion of which are coming from new Internet companies. And lets say AOL meets or exceeds earnings by a few cents, what is everyone else looking for. When considering this question, one needs to remember that this stock costs $100 a share and the company's market value is over $10 billion. AOL is entering the "proof is in the pudding" stage. My guess is the upside is pretty much reflected in the stock price and there is only the possibility of a significant downside. Later, John

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