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

To: Linda Pearson who wrote (45434)	1/24/1998 9:05:00 PM
From: RetiredNow	Read Replies (2) \| Respond to of 58324

Hey Linda, I posted my projections for next year, but no one responded. I think it may be because it didn't look good or they didn't understand what I was doing. But you said you were a financial analyst, so I would very much like to know your thoughts on my post, if you don't mind. Here is a copy of it: <<Jeez, I was just thinking about the impact the $100 million ad campaign will have on '98 earnings and the outlook is not good. Check out my back of the envelope logic. If we assume that the advertising has zero effect then IOM will grow earnings at about 30-40%. But being optimists, we'll assume that it has a dazzling effect and IOM once again doubles its earnings as it did from prior year ($.21) to current year ($.42). That means at 12/98 we'll have earnings of $.84. BUT WAIT! We need to reduce earnings by the $100 million expense. So $100M divided by an estimated 275 million (no more splits, please) gives us $.36. So BEST case scenario is that EPS for the year ended 12/98 will be $.84-$.36 = $.48. That's only 12.5% growth. Let's go one step further. At 12.5% growth, we can give IOM a forward looking PE of 12.5 times expected '98 earnings of $.48 for a forecasted share price of $6 on 12/98. Now, I own a bunch of shares, so the above scenario doesn't please me, but I just wanted to wake some of you up to the thoughts that may be running through the stock analysts fuzzy heads.>>