Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Any info about Iomega (IOM)? -- Ignore unavailable to you. Want to Upgrade?

To: robert read who wrote (33413)	10/26/1997 7:07:00 PM
From: Paul Angell	Respond to of 58324

Robert, <<i have noticed for a long time that while the dow and nasdaq go up big iomega stalls, and the reverse has happened when the dow and nasdaq stall. iomega was still in the teens when the dow reached 8000. i have seen posters here at SI saying that they feel good owning iomega now that the dow, nasdaq, etc, have been dropping.>> It's hard to believe that IOM's stock price and the DOW or NASDAQ are in any way related numerically. I think the reason that IOM is rallying now is because it is finally getting sponsorship from Wall St. The demand for shares has increased because the professionals are seeing value and integrity in the current earnings and some potential for growth. For most of the year the street was happy with a PE of 40 with lower sponsorship. If EPS is 0.90 for FY97 then we can reasonably expect the price to be $36 by December based on current FY97 earnings estimate. Provided that the whole market is not on its knees we should further expect the price to rise to 40 x 98 EPS by early next year. (circa $48) This is why IOM is such a good investment. IMO the only downside risk is what happens to the market as a whole. A serious correction may send the pros scurrying for cover in fixed incomes. This risk applies to all equities and the ones with the most momentum will go down furthest. Remember also that the curent legal bullshit with Nomai has already been discounted as insignificant by the market. Happy times ahead with IOM. Paul.