Any info about Iomega (IOM)? Message Board

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

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To: Michael Canario who wrote (7566)	9/25/1996 12:19:00 AM
From: Patrick Keeler	of 58324

If the Zip approaches being a standard then by that time Iomega will probably not be making any Zip drives. Huge companies like Matsushita (new licensee), Seiko-Epson (present #1 Zip manufacturer), Sentinel (currently building a Zip drive plant), maybe Sony or Fujitsu will be cranking out millions of the little Zips. Meanwhile, back in Roy, Utah, Iomega will be making and selling disks. Selling disks for every drive made. Further, regular royalty checks for drive sales will be arriving from the above huge companies. It is not cetain that the 'standard' scenario will come about. But if it does the share price will be much much higher than $20. Actually, if Iomega just hits analysts expectation of $0.77 for 1997 it will be much higher than $20. The rosy scenario: Zip ships with every new computer. 35 million new computers are shipped. Each new computer/Zip owner buys 5 disks on average over the next year. Iomega makes $1.75 Net Margin on each disk sold. That's $306 MM in Net Income in Zip disks. Would translate to about $2/share. Meanwhile the case for the stock at $30 can be made on lowly retail sales and much increasing year over year revenue and EPS numbers.

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