Carpe, here is my feeling on the Palm IPO. . .
First, I must say that Palm devices are selling like hotcakes. . . today. . .but not necessarily tomorrow. . .they are merely "electronic organizers" . . .whereas other hand held devices are actual PCs. . . capable of surfing the net and running many popular programs. . .now of course, PALM will follow up with similar type devices. . .but again that is a bet on the future.
Next, never forget that COMS will continue to own 90% of PALM. . .this entire PALM IPO only represents a 10% share of PALM. . . . meaning COMS will reap the lions share of benefits by far.
Then, COMS has promised its own shareholders that some time in the summer they will receive shares of PALM directly. . .I guess as a dividend of sorts.
Then, the raising of the price on the IPO is upsetting those that are signed up. . .its a lot of shares to go out at such a high price. . . tons of anticipation though. . . so it could still rocket on popularity. . . and for that reason alone, I would be interested in the momo play.
Finally, if COMS drops on the PALM IPO, it could set up a terrific opportunity. . .however, I don't believe it will. . .in fact, I think it will rise after the IPO and disappoint everyone.
I believe I will wait for a tech sell-off to buy COMS, which in many ways is far better than buying the PALM IPO, IMO.
Hope that helps,
Rande Is |
