Any info about Iomega (IOM)? Message Board

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Non-Tech : Any info about Iomega (IOM)?

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To: Rocky Reid who wrote (50635)	3/18/1998 7:54:00 PM
From: Rational	Read Replies (2) of 58324

For technological companies with monopolistic positions, the book value will be insignificant compared to the market value. You seem to be in a different world, IMHO, (no offense intended). For a comparison, real assets (like steel mills) often have a larger book value than their market value. The market value is the expected discounted future cash flows accruable to stockholders. The liquidation value of current assets (book value?) is included in these cash flows; but that is not all that one should count. Present earnings have very little to do with the market value. The IOM announcement triggers a reevaluation of the expectation about FUTURE cash flows. The P/E based on current earnings is USELESS. Analysts' revised estimates of future earnings are as worthless as they were before IOM announced. IMO, one should basically judge an investment based on whether there has been an overreaction, how confident insiders are feeling about their company (like the huge insider buying at $8), etc. and proceed with guess and luck. The accounting numbers are useless, IMHO. Sankar

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