Relentless: Why does someone buy IOM over WDC? Why not buy both? But, I'll tell you my opinion:
WDC's stock price grew by 250% from Jan 1996 to date, IOM's stock price grew from $6 to $17.5, also nearly 300%, from January 1996 to date. WDC's sales grew from $2.43 billion in 1995 to $3.549 billion in 1996, an increase of 68%. IOM's sales grew from $324 million to over $1.1 billion, an increase of nearly 300%.
WDC's sales this year are expected to grow by, at tops, 20%, or to nearly $3 billion.
IOM's sales this year are expected to grow by, at least, 70%, or to nearly $1.7 billion.
WDC doesn't have new products scheduled for this year which could possibly increase their sales by another 25%. IOM has new products scheduled this year (lap top zip, n-hand) which could increase revenue by another 25%.
Now, you tell me, which company is more undervalued? Valuation is relative to what is happening, not what has happened. We already know what has happened. Why pay for something that has already occurred? With IOM you need to pay a premium for what is going to happen and that premium on IOM currently is very, very cheap. It's cheap because the market remains cynical while wearings its typical blinders.
As far as "no one wants to buy IOM" goes...well, I happen to be a living breathing human being who bought IOM and I represent others that bought IOM. It's easy to get discouraged as the market tests your wits, but it is more difficult to take the path that leads to long term success, not your typical dilly bop crowd.
Intel was a stock which sat around on its hunches for nearly two years and many clients and were pissed at its performance, but what about now? WDC caved in prior to last year as well? At what point do you begin judging WDC's behavior as a company?
I seriously believe a person is a fool to short IOM. They seriously do not know what they are dealing with or they are fooling themselves into believing they know what they are doing relative to a time frame dictated by their personal blinders. |
