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

To: Rocky Reid who wrote (52160)	4/9/1998 1:16:00 AM
From: Andrew Shih	Read Replies (2) \| Respond to of 58324

>>Estimates for IOM earnings this year range from a 40% decline to a more than 60% decline from last year. There is little hope that a company declining this fast will be awarded a PE of greater than 20. IOM longs have a long, hard road ahead of them. And it could get much worse if IOM warns of more losses at the CC.<< Unless IOM warns of continued problems, I'd be very surprised with a stock price below $6. The problem here is your narrow view of valuation. Their are other factors to consider. P/E is fine, but P/S, etc. are also important. Heck, if you based everything off of P/E alone, how would you justify the valuations of the Internet companies? Even if Yahoo could double its earnings every quarter for the next year, that would only amount to $1.20 in earnings for the next twelve months. That's still a P/E around 80. -Andrew

To: Rocky Reid who wrote (52160)	4/9/1998 8:47:00 AM
From: Alan Rosen	Respond to of 58324

Rocky, Catching-up on yesterday's posts. Regarding your post #52161....so you now have IOM down to $3.60 a share. Let me understand this, Syqt with a mountain of debt and shipping about $300 mil/year is a "buy" at $3...IOM with a $100 mil in cash, 2 billion in sales and an installed base of 14 million units is a $3.60 stock. Just keep throwing it out there and see what sticks! archcc

To: Rocky Reid who wrote (52160)	4/9/1998 9:27:00 AM
From: RetiredNow	Respond to of 58324

I have to agree with your analysis. You never really know what the market is going to do, but at this point I think the downside potential is huge while the near term upside risk is negligible. Hopefully, we can close out by next Friday. Good luck to the longs. I have been in your position before, so I know how hard it is to bail on a stock which you've lost so much money in. I've lost a little in this one too. It's hard to deliberately give up hope that the stock may rebound, but sometimes that's what you have to do in order to stay in the game. Anyway, I hope this thing drops to $5 then rebounds back to $10 so that everyone can win!