Any info about Iomega (IOM)? Message Board

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

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To: Ken Marcus who wrote (2392)	6/4/1996 7:10:00 AM
From: Joe Rizzo	of 58324

How can you believe the 8 million drive number when the company itself says that capacity for 1996 is only 5 million? Further backlog as of the end of 3/96 was only 147 mm versus 153 mm at the end of January, 96. Finally, inventories only increased slightly from December to March. These are not the financial signs of a company that is about to report a 50% sequential increase in sales. Is the $1.6 billion dollar revenue being thrown around based on 8 million drives? I think so. Yet $1.6 billion is patently absurd. That would require the company to average $459 mm per quarter for the next three quarters. This would be 93% sequential growth for three quarters. This growth must occur during a slow september quarter and a period of declining average selling prices. The Iomegans have benefitted from one of the greatest short squeezes in history!!! Now that it is over, the stock will crash and burn. You can not justify a $5 billion valuation while spending only $7 million per quarter on R&D. Joe Rizzo JMR Trading

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