Ref:"Hi, All. A few thoughts about IOMG's earning."
Kangming,
As I said in one of the previous post, I think 1996 will be the year of
great revenue/market growth and 1997 and beyond will be the years
of great earnings.
I think what we see in earnings now is just the tip of the iceberg. Huge
costs are being absorbed now and throughout 1996 due to the immense
task of ramming up both Zip and Jaz, capacity expansions, stepped up
R&D, huge marketing/ad campaigns, numerous OEM regotiations,
a tremendous hiring rate and doubling/tripling of the work force, expansions
to Asia and Europe, training new employees, etc, etc.
The fact that IOMG has been able to make good profits during this period
provides a good clue for its great earning potentials in 1997 and beyond -
when most of these huge costs are no longer absorbed. One key reason
why I have been quite bullish longterm.
The critics and ignorants are having a great time picking on IOMG investors
last several weeks - like back in Feb. But I am quite sure that comes 1997
and 1998, they will all look like fools. The louder they jeer IOMG investors now,
the more foolish they will look later. Ask Herb Greenberg and Dan Dorfman.
Young |
