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

To: John Alan Wallace who wrote (53002)	4/18/1998 2:39:00 PM
From: RetiredNow	Read Replies (1) \| Respond to of 58324

John and everyone else: the formula I gave you is one of many tools you can use. Anyone who says to use one formula or one metric or one anything to make your decisions is only fooling himself. I was hoping to help you guys and girls by giving you one more tool to use in your investing. If you don't like it, don't use it. It's not an absolute. Do I use it? Sometimes I do, as a starting point. I have many criteria by which I make investment decisions. But what I don't do is dismiss as foolish and irrelevant the theories that finance theorists have worked on in much more detail than any of us has for the last century. These theorists have attempted to quantify things in order to eliminate bias. Those of you that have responded vehemently to my post are only making it clear to everyone else that you prefer to invest based on your gut or emotions. If that makes you happy, have at it. For the rest of us that want to make money and put emotions aside, let's try to learn from each other and consider carefully the tools we can use to make unbiased decisions. As why I plan to cover at $6, well I am not as optimistic as you guys are. I've figured a much lower growth rate and lower EPS numbers. Plus, no earnings for the next two quarters means people may bail in the mean time in order to make money elsewhere. S.R., as to AOL, it could be that AOL's EPS estimates are huge or that their anticipated growth rate is huge when compared to their opportunity cost of capital. That would explain the high PE. But to get away from quantitative stuff, my feeling is that their is a kind of mania surrounding any Internet stock, thus the wildly unjustified PEs. They'll come down eventually. I can guarantee you that.

To: John Alan Wallace who wrote (53002)	4/18/1998 4:18:00 PM
From: RetiredNow	Read Replies (1) \| Respond to of 58324

I'm going to cover at $6 because I believe the company will not grow as fast as some people on this thread do. In addition, I think EPS will be pretty low for the next year or so. Also, the fuzzy factors include the fact that there is a lot of doubt and uncertainty concerning this stock. That means people will stay away from it, or move money away from IOM to pursue more certain gains. After all, we are in a raging bull market and there are other companies that offer more reward for less risk. $6 is just the figure I came up with after using all of my own heuristics, formulas, and fundamental analysis. I truly believe the fundamentals have changed for this company. When that happens, I start thinking short term about what I need to do to make money. From that perspective I think $6 is doable. In the long term, things might get better, if the company can successfully execute its goals. I don't know. At this point, I'd rather have most of my money in stocks like LU and CSCO even though they are overvalued. Less risk than IOM. Anyway, good luck.