I appreciate your enthusiasm, but the repetitive exclamation points and IOmega's ticker symbol could be misconstrued as hype. Personally, I don't believe in averaging down, even though this MIGHT qualify as a special case. Unless some brand new technology comes into the market tommorow (NOT likely), Iomega will earn about $1 this year, for a P/E of 21. A P/E of 21 for a company growing at 100% and a potential of replacing the 3.5 floppy is ludicrous, considering Coca Cola, growing at 20% TOPS, has a P/E of 38! Don't you just love Market logic. Whoever designed the efficient market theory never met a money manager or an investor in a state of panic. Remember, in September 1995, Iomega dropped from 5 to 2.7 before earnings, and in January, it dropped from 9 to 5.7 before earnings, and guess what happened after?
Good luck to everyone in Iomega. |
