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Technology Stocks : PALM - The rebirth of Palm Inc.

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To: David Howe who wrote (1269)8/18/2000 5:00:33 PM
From: Mang Cheng  Read Replies (1) of 6784
 
David, my mean-nothing wild guesses are as follows, I couldn't answer any of your questions :

1. Year 2001 (ends June 01) revenue of 2.2 billions with psr of 20 the share price should be $78 (current price is $36)

2. Year 2002 (ends June 02) revenue of 3.74 billion (70% year over year rev growth) with psr of 20 the share price should be $133

3. Year 2003 (ends June 03) revenue of 6.0 billion (60% year over year rev growth) with psr of 20 the share price should be $214

4. Year 2004 (ends June 04) revenue of 9.6 billions (60% year over year rev growth) with psr of 20 the share price should be $342

Based on no. 1, that's why we see analyst's projection of share price of $80 in 12 months time.

Also I'm using only 70 and then 60% year over year growth rate, not 100% as they are doing now. Of course with growth rate slowing, the psr will have to be adjusted downward which I haven't done here. On the otherhand if growth rate accelerate, psr will expand too.

Mang
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