Steve, Look to me like positive momentum is building in the storage
device industry, especially in the high-capacity removable storage industry.
Very positive reports and projections on the industy 's strong future
growth and trends have been published last few weeks (by Disk Trends
and others) and caused investors and mutual funds to take notice and get in
early on the cheap. Seagate, STOR, HMTT, etc. have appeciated significantly
in last few weeks.
In the PC industry, we are now also beginning to see industry-wide support for
high-capacity removable storage. As a result, I think investors now realize that
products like Zip and Jaz are not flashes in the pan, but represent only the beginning
of a major new trend in the PC industry. Of course, IOMG is far and away the
leader of the pack and should benefit the most from this new trend.
Can you imagine how IOMG would be doing now with all recent positive news and
positive industry momentum - if not for the fact that it had fallen so low?
The fact that IOMG apparently hit a shorterm bottom at around 14, plus the
positive momentum building in the industry where it is the undisputed leader,
is leading me to believe that price will move up from here -- barring a disastrous
3Q report. A positive surprise in 3Q report will rocket it up due to anticipation of
strong X-mas sales in 4Q and more OEM buying/shipments.
There is still one dark cloud over the horizon. 3Q report, which I believe will keep
IOMG rising much higher in the shorterm. But after 3Q report, watch out!
(I am quite comfortable with JPM 's 0.07/257MM estimates, but First Call still show
0.11 estimate)
Young |
