Hello Everybody. I am new to this thread, and should be a regular. I would like to start off by offering my opinion on IOMG. First of all, I will bluntly state that I believe this stock is overvalued. While earning ARE rapidly growing, I do not believe the forcast increase is large enough, or sustainable enough to warrent a p/e ratio of over 70!
True, they do have a good, no, a great product, but for the short term, it just does not make sense to buy into this company. This high volume has obviously meant that shorts have been running for cover, but when it starts slacking off again, look for IOMG to dip. I would look for it to flirt with it's recent low of 12. This of course depends on 3Q earning being flat, or on target. It would take a very big surprise to boost this stock back to what it was, which is pretty much impossible for the near term. Over the long term, it is obvious this stock will flourish.
Being honest here, they DON'T have any competition for Syquest, and even the new 540MB drive should not pose any problems. Eventually, it is hard to see that the Jaz drive would not replace the standard drives. For the long term, this is definitely a buy, but it makes no sense to buy at 20 now, when in all likelihood, it will go down perhaps over 25%
I AM NOT A BIG BEAR, but for now, I just feel that this one's overvalued. Actually though, when it does go down, I AM looking to buy.
Brian |
