PALM - The rebirth of Palm Inc. Message Board

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Technology Stocks : PALM - The rebirth of Palm Inc.

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To: Bill Coenen who wrote (1903)	9/25/2000 4:57:22 PM
From: TechieGuy-alt	Read Replies (1) of 6784

One quick look of the earning statement revealed that the gross margins are down to ~38% (from ~44%) in the same Q last year. This could be due to price pressures (the $150 devices probably have significantly less gross margins). The one thing that I do not like about the PALM story is the paltry earnings. A stock with about (say even with 100% same Q YoY growth), PALM would earn less than 25c/year one year out (approx). At a price of $51/sh PE=204. Even with growth rates in the 100YoY range, we are still at a 2X premium to PEG (PE/Growth) rates (fair value being 1). On the other hand, exceptional companies probably do not see their stocks values sensibly for very longs periods of time, a-la MSFT, INTC, CSCO etc. Lets see what the CC is like. TG

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