Any info about Iomega (IOM)? Message Board

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

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To: RetiredNow who wrote (52158)	4/8/1998 11:53:00 PM
From: Rocky Reid	Read Replies (3) of 58324

>>I'm just curious. I wanted to talk to them about when to close out a short. So if anyone is short, how low will it go? I'm thinking $5.<< I think $4.80. The real math is very disconcerting for IOM longs. Here it is: A loss of $10 Million will be about (-.04/share) A loss of $25 Million will be about (-.09›/share) Being conservative in my short position, let's take the (-.04›) figure and add in into the trailing Earnings. Last year, Earnings were .09› for the first Quarter, and .42› for the year.. Plug in the (-.04›) loss for this Quarter, and you get trailing Earnings of .29›. Based on this after Earnings are announced, at $4.80, IOM will have a PE 16.55 -- almost exactly where it is right now. As you can see, if the earnings are really bad, IOM could dive down much farther. The $25 Million loss with PE of 15 would mean an IOM stock price of $3.60. Estimates for IOM earnings this year range from a 40% decline to a more than 60% decline from last year. There is little hope that a company declining this fast will be awarded a PE of greater than 20. IOM longs have a long, hard road ahead of them. And it could get much worse if IOM warns of more losses at the CC.

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