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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Valueman who wrote (9872)	4/16/1998 3:57:00 PM
From: Gregg Powers	Respond to of 152472

OT Valueman With our 4mm+ position, we obviously feel pretty strongly about Imation. The basic metrics are pretty straightforward: 0.4x revenue, 4.5x trailing EBDITA, 1.0x book, 0.3x forward revenue, 3.5x forward EBDITA, 13x FY 1998 EPS and 5x FY 1999 EPS. There are three broad business segments data storage, printing and medical maging and multiple subsegments with each category. Research coverage is pathetic, particularly since most of the guys follow big-cap simple stories like EK, PRD and 3M. From a reported earnings standpoint, she's still pretty ugly as management is mid-way through a fairly massive restructuring (start with a 15%+ reduction in headcount and go from there). However, a quick read of the 10K provides some pretty interesting insight into the future. Based on the bank covenants, management clearly expects to earn north of $1.00 during FY 98--and this is after a breakeven Q1 and marginally profitable Q2. This implies are pretty steep, post-restructuring EPS ramp--which provides credence to my $3.00 FY 99 number. If you want to know more, I have happy to chat with you about it off-line (but it's inappropriate for me to continue here). Furthermore, to all on the thread--Imation is a turnaround, and turnarounds are inherently difficult to time and tend to deliver much aggravation prior to the pay-off. Best regards, Gregg