As was pointed out in the thread before, the key number in the filling is the 'up to' $225 million that Nokia, AOL, and Motorola will pay for 'up to' 4.5% of Palm equity. The 'up to' language is there to protect them in case the EVENTUAL IPO offering price soars -- after all they are forking over real cash to Palm, not shares. These numbers suggest a very preliminary valuation of $5 Billion for Palm. If recent experience is any guide, this preliminary valuation will be exceeded by at least a factor of 2 when the actual IPO offering price is set, and, of course, after the first day of trading the Palm valuation will again increase by at least another factor of two IMO -- that will be $20 Billion, which, BTW, is close to my valuation guesstimate a few weeks back. Palm's earnings this quarter will play a decisive role in how the valuation evolves, and, IMO, they will be spectacular.
At this point, I believe that any price below $50 for COMS will be viewed in one year as an unbelievable bargain. I never thought I would buy more COMS, but if I can get it at less than $50 tomorrow morning, I will.
Kyros |
