Duncan, regarding your adam smith post, what is the book value of a patent?
How does Adam Smith know we haven't computed the market value of a company and it's real value? He doesn't. JP Morgan estimates for 1996, 1.2 billion. At 6 billion market cap, that is 5 times 1996 sales. My opinion of 96 sales is over 1.6 billion, bassed on the iomega manager's estimate of 8 million zips this year. And based on the fact that KE said at the OMNI luncheon during the roadshow, thet the estimates (JP and H&Q if I recall correctly) did not take into account the Acer and Packard Bell deals. At 6 billion this is 3.75 times 96 sales. Slow growers are priced at 3x sales, and iomega is only 3.75. What a deal.
After the secondary is done, the favors owed will have been paid, the negative articles, the Duncan Idahos, the Dorfmans will abate.
So, one other question, the secondary is oversubscribed. Does that mean that the institutional investors don't bother to compute the worth of a company before buying it? I don't think so.
Ken
Biased toward iomega since I own it. |
