Lets take a look at this thread to get an indication of popular opinion and to also get an idea of where we may be heading.....
When IOM was 33 pre-split, everyone (with few exceptions) was either extrememly happy holding, considering buying more, buying more, and or buying options.
Now at $7 everyone is talking about selling, has sold, and or is talking about leaving forever. This includes most of the long term bulls. Myself included.
Yes the situation has changed, IOM growth appears to be slowing if not out reversing, cash flow is again negative, and worse yet they are going to be reporting significant losses.
Now lets take a realistic look at the comapany.... The products are in reasonably high demand, I believe that everything IOM sells is sold at a profit. No doubt more drives and disks will be sold in the future. If IOM had too, they could seriously cut back SG&A including expansion, advertising, research and developement etc.... Hunker down and turning small profits draw upon huge credit lines if needed and or look for potential sale of IOM if they didn't think they could come out with new products succesfully. Does anyone think IOM will go bankrupt?? I doubt it. They would have to take some completely irresponsible decisions. I.E. Not curtail advertising, continuing to expand on R&D and plant and equipment for items with no demand etc...
In the near term, I believe they will probably continue both R&D and advertising. Thus we have the potential to drift lower as the prospects of several more negative quarters come more into the light. But how far down will we go? As long at they can make a profit on the equipment they are currently selling and they continue to dominate the market place for removable storage, this company has value.
Can IOM trade down to $5? Maybe.... Can it drift down to $3?? Highly doubtfull. Much better chance of trading up to $10 in light of any kind of encouraging news........ Right now there is no encouraging news.
I will continue to hold..... Probably buy more. (Then again IOM is only about 5% of my total investment cash...)
Praying they get it together....... |
