>>Yes, eventually this stock will get the respect it deserves,<<
What if I were to propose the opposite?
This stock will never gain respect from the Street.
Both are equally valid statements in that they try and forecast the psychology of the Market-- something that has been tried and failed by expert after expert. Even with the bad report by SYQT today, the stock went up by a large percentage. IOM stock is still hated after all this time, and shows no indication that this attitude has changed.
A year ago, IOM's Institutional ownership was around 17%. This year, it dipped to around 9%, and recently has made gains almost back to where it was one year ago. The low Institutional Ownership of IOM stock says mountains about what the Big-Wigs think about it. They don't. Therefore, IOM stock will never enjoy the fruits of being a favored issue-- like AOL and SYQT.
Bear in mind that Iomega's year to year growth is rapidly maturing and levelling off. It's current PE range of 33-40 already accounts for more than a year of growth, and with projections for revenue gains to decline rapidly year to year, it's PE will drop accordingly.
The facts of declining year to year growth, and especially "unfair" aspects like Street Favortism, make IOM a poor choice for investment compared to proven movers like DELL, CPQ, AOL, INTC, and many, many others. After this correction is over, look for these stocks to once again make like a hot air balloon. Look for IOM to just sit there. |
