Buckingham's revised estimates show the Street's realization that Iomega's Earnings have topped out, and this is where they could stay for the short term. With legitimate competition from Sony 200MB, Syquest SparQ and Rocket, among others, Iomega's margins will be crushed. Iomega stock may sit here for yet another year. If you have been in IOM long term, you no doubt have been very disappointed in it's performance during the last 52 weeks or so. With stocks like DELL, CPQ, INTC, AOL, etc. breaking new ground rapidly this past year, the supposed high-flyer IOM has been the laggard. Even with the newest earnings figured in, the share price has failed to advance.
The good news is, thanks to the recent market declines, there are some real bargains out there in real quality companies. IOM, however, is not one of these. Aside from my QGLY position, I have been sitting with cash on the sidelines for the past couple of weeks. I will be buying this week, as I think most of the selling is finally done with. IOM will not be among my purchases. My most likely candidates? Probably INTC, CPQ, and DELL. These proven workhorses should provide plenty of movement this year too, just like last. But not IOM. |
