"That's quite a prediction. I know that you don't just throw stuff around for the hell of it."
Actually, Alan, you really don't know that, I firmly believe in the "Let's put it up the flagpole and see if anyone salutes" principle. However, in this case I've got some reasons for my (pretty low) short-term prediction.
1. We've come off of a pretty miserable year which has been keeping the stock price artificially squashed, starting with the $multi-gazillion ad campaign initiated at the Super Bowl, continuing with the long-languishing COD difficulties, through the no-CEO "crisis" and the ever-present "Zip-killers" in the wings (anybody seen Swan's yet? That was a couple of years ago, now and one of the articles referred to in this thread within the last week or two was still talking about it.) Since Iomega is a relatively new company out there, these four (and probably more I can't think of off the top of my head) things really have hurt.
2. IMHO, everything in #1 has been fixed, either by Iomega, or by one or more of its competitors. This should burn off the black cloud which has hanging over IOM's head like the one over Mr. Mtspltyk's (There's an "x" in that somewhere, I think, any Li'l Abner fans still out there?) and bring back a fair valuation.
3. Iomega is still a growth company, regardless of what Ken P. thinks (Brtttth...). If they can return to profitability this Q, and make, say $0.12 next Q, we should be on the way to a $1.00 year for CY 99. A P/E of 30 gives you a $30 stock, which, IMHO, is a low P/E for the medium-term prospects, but we're not going to see a valuation like that yet. A little over half that is probably attainable, if no serious missteps are made.
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"For every action, there is an equal and opposite criticism." |
