$$$$ PHONE.COM RATED STRONG BUY
Banc of America Securities rates the shares of PHONE.COM (PHCM - $199) a
STRONG BUY, with a 12-month price target of $225. The brokerage said the
company's recent announcement that it would acquire APiON, a maker of
Wireless Application Protocol - or WAP - gateway products for about $239
million in stock enables PHONE.COM to eliminate a rising competitor in the
WAP market. With the acquisition, the company now has relationships with
43 wireless operators and a footprint approaching 40% of the world's total
subscriber base. The brokerage forecasts a loss of $0.94 per share for
2000.
COMMENT: It is sometimes hard to buy a company with a high stock price
(although you know our thinking about this - Pretend it will split its
stock 5-1 tomorrow - What's the difference then? NOTHING.) And it is
sometimes hard to buy a stock with no earnings and none on the horizon.
But the low for the year is $32 and the high is $229. This company has
40% of the footprint of the cellular world. That means they are covering
40% of the globe with their software that all cell phone companies need to
incorporate surfing the net on your cell phone. Dick Tracy's
wrist-watch-phone-computer is coming folks. Get ready for it, because we
guarantee you'll have a surfing cell phone in three years or less. (Some
of us have already ordered them!)
We have a price target of $248, a 24% return if met, but we have even
higher hopes that we're not willing to print now! So if you can't buy
1000 shares, buy 100. If you can't buy 100, try 17 shares or 7 shares or
71 shares. We expect a split announcement any time now and whatever you
buy should be multiplied by 2, 3 , 4 or even 5 times when they split the
shares. Of course, the stock is suitable for aggressive accounts only.
After all, they have no earnings!
BULLMARKET REPORT
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