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Non-Tech : Any info about Iomega (IOM)?
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To: Patrick Keeler who wrote (6914)9/6/1996 10:50:00 AM
From: J P Cross   of 58324
 
Patrick, Valuations for the typical data storage company are less
than 1 (one) times sales.

IOMG exceeds that by far with current valuation
132 x 14.5 = ~1,914 billion market cap

Even with 1mm to 1.4mm in sales for year end 96, IOMG market
cap is high.

If IOMG proves to be more that just an average data storage
producing company then IOMG could very well be worth more
than 1.3 billion or so. Right now IMO, IOMG is over valued.

It will be tough for IOMG to reach 2.0 billion in sales. So, for me to
have a reasonable hedge on the down side, paying more than
one time estimated 96 sales at this time is too risky for me. I never
try to buy a stock at the bottom only luck does that. What I try to
figure out for me is, what price would I pay for a company no
matter if it goes up or down from my buy point. I also accumulate
share to average in so buying at the bottom is not my strategy. Buying at a reasonable price per share with good upside potential
is my approach.

You may be willing to pay a higher premium.

What do you think Q3 sales will be? H&Q est. 300mm. This is 6%
over Q2 283mm. Not exactly the sales growth rate I would like to
see for a company with a market cap premium of 600mm or so.
Earning growth is another matter. Numbers can be manipulated
to get desired EPS figures. IMO, the sales will be key to future
share value. JMO

If more people were willing to pay a premium for IOMG stock then
where are all of the buyers? Why so many short positions?

Regards,

JP Cross
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