To: D.J.Smyth who wrote (34633 ) 11/5/1997 9:54:00 PM From: Gary Wisdom Read Replies (1) | Respond to of 58324
To: Darrell Re: the problem with Iomega Darrell, I know what the problem with Iomega's stock price is. IT HAS EARNINGS. Have you noticed the only firms in the market that get ludicrous multiples are the ones with no earnings (Syqt, Aol, Amzn)? Iomega is going to have to earn higher multiples going forward. Right now, their multiple is pretty high. Compared to past revenue and earnings growth, it is very reasonable. However, I think Iomega has to prove to the investment community that it can expand these growth rates through 1. continued market dominance 2. new successful products and 3. increases in margin. That is why I think that the nhand announcement will give us $32, but won't give us more until the next earnings report shows just how good this company is. I am very nervous about banking on Nov 25s at this point, because, as you know, as options expiration approaches, the price of both the stocks and indices can be very manipulated. And, I am avoiding the Nov 30s at all costs. However, I really believe the value is in the Feb 25s and 30s. Should we see retracement to $26 (due to market volatility only), I will pounce on these. Before today started, I posted that today's price range would be from the low 28s to the high 28s. I was not far off. I really believe watching the price/volume intraday of this stock can afford one the opportunity to make a lot of additional money from this stock. It is soooooo predictable. Today, we saw some serious action trying to support the stock above $29. I believe we won't see solid support at this level until the week of November 17, though. If Iomega announces a major launch involving another key player in the tech industry, I take back everything I said above. In that case, we'll see $35 before you can say Syquest who? Thanks again for all your posts. Your information has definitely made me money.