Any info about Iomega (IOM)? Message Board

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

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To: Mary Flynn who wrote (1640)	5/13/1996 12:06:00 PM
From: bill meehan	of 58324

Mary, in a word--NO. The current prices of both appear to be discounting smooth sailing well into the future. i don't know more about IMPX, other than that they're a supplier (not exclusive) to IOMG, so i'll limit comments to IOMG. very good product line, but in the business they're in, shortages and inability to meet demand are not positives. does that mean the company won't be worth $3.6 billion sometime? perhaps it will, but there is no justifacation for that valuation now. USRX traded (split adjusted) between $3 and $11 for more than 3 years after coming public in 1991. during that time, the stock never traded above 25x earnings. USRX p/e (using '97 ests) is 16 vs. IOMG at about 50. ($1.25/share for IOMG vs. $5.66 for USRX--fy ending 9/97). IOMG could very well turn out to be a great long-term investment, but risk/reward at these levels doesn't appear attractive. money flow is negative, and the stock is losing momentum.

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