Any info about Iomega (IOM)? Message Board

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

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To: J P Cross who wrote (6130)	8/16/1996 5:31:00 PM
From: Patrick Keeler	of 58324

How about this bullish scenario... What if Iomega does the $2.2 billion AND increases net margin to 7.5%? Net income would be $165 MM. Using shares outstanding of 140 million that would yield EPS = $1.18. At a PE of 25, shares would be worth $30, or 100% more than today. That's the realistic upside of this stock, IMO. Currently, the most bearish case is built into the stock at $15. Zip is a fad that's fading, Jaz is a niche drive, revenue growth will flatten and Iomega will be worth no more, on a multiple of sales, than Western Digital. Iomega advertised for executives last August with the headline "come help us become a $2 billion dollar company." The company believes it can get $2 billion, analysts believe it can approach $2 billion by end of 1997, and net margins will improve. It might take them the first quarter of 1998... ;) H&Q has Iomega's revenue at the end of 1997 at (I'm a little scketchy on his revenue numbers so if I'm wrong someone correct me) $1.6 billion. Their EPS estimate is $0.82, therefore, their assumed average net margin for 1997 is about 7-7.5%. That 7.5% number keeps coming up...

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