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Post of the Day
January 19, 1999

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Subject: Zip=junk!!??
Author: benman

Hi all,

I'm new to TMF and I've been reading the messages in this forum over the last few days to try to get a handle on IOM's prospects. I must say, I'm disappointed in what I've seen. Most of what I've seen seems to be childish and unfounded rants. Here's what I've learned from the stock evaluator at quicken.com...

I used the "comparison" feature to compare IOM to similar stocks in the same industry. IOM was compared to EMC, SEG, LXK, QNTM, NTAP, STK, WDC, MXTR, CREAF, RDRT, HTCH, XIRC, KMAG, HMTT. Here are the results in a nutshell...

1) most of these companies had a high or a non-existant P/E. A few were better than IOM, but not very many.

2) The 5 year EPS of IOM is projected to be 30.61%. This is considerably better than just about every other stock in the category (most were negative!).

3) The price to sales ratio was 1.38. This is also considerably better than just about every other stock in the category. If you read your MF stock valuation articles, you would know that P/S is considered the next best indicator for companies without meaningful P/E's.

4) Revenues per employee... $595,000. Again IOM was fourth best on the list.

5) Debt to Equity... 0.81. IOM was middle of the pack on this one.

"My only agenda is to make an informed decision. I don't know about everybody else, but I'm here to make money. Everything I see tells me that IOM is in front of the pack in its industry."

Now, theres some hard numbers for us to discuss. If somebody has other sources to refute these results, then I'd love to hear about 'em. My only agenda is to make an informed decision. I don't know about everybody else, but I'm here to make money. Everything I see tells me that IOM is in front of the pack in its industry. And I certainly consider it a plus that its main competitor just bit the dust. That being said, do I think IOM is a good buy from a very conservative point of view... heck no (thats why I also have some GM stock in my portfolio)! But do I expect a good pop in the price after the 21st, you bet!

Also, is there technology that exist that is better than Zip, Jaz, Clic!, etc? I'm sure there is. But hey, I'm a programmer and I can't count all the ZIP drives I see in the office. Historically, its not always been the best product that becomes the household name.

And one other thing. The statement was made that IOM lost liquidity over the last week. I pulled up a 1-week chart of IOM with an overlay of the DOW, S&P 500 and NASDAQ indices. I don't see that it did any worse in it performance than the overall market. IOM didn't lose any more funding this week than any other stock out there.

Zip=junk?? C'mon folks! Lets act like grownups and have a rational discussion!


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