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

To: Jock Hutchinson who wrote (53114)	4/20/1998 12:49:00 PM
From: Herb Fuller	Respond to of 58324

Jock , I believe that you have to consider a companies growth factor when you consider if the Price/sales factor is in line or not with the stock price. A case in point is the box makers . CPQ's p/s factor is 1.7 and Dell's p/s factor is 3.9 . The reason for the difference is that Dell is growing faster than CPQ . Iomega has been growing at a rate of some 35%+ , give or take , a year . The market would normally put a p/s ratio of around 3 for a company growing at that rate . The market , by placing a 1 p/s ratio on Iomega , is telling us that Iomega's future rate of growth is either flat or diminishing . Using the difference between the higher 35% growth and the flat to diminishing rate we can come up with a price between $6 and $18 . It is going to be interesting to watch this play out . Herb