From Briefing.com
15:32 ET ******
Handspring (HAND) 85 1/2 -1 13/16: Quick what does PDA stand for? Officially, it stands for personal digital assistant, as in the extremely popular handheld organizers made by Handspring, Palm (PALM), Sony (SNE), etc. When referring to HAND's stock, however, PDA could also be interpreted to mean pretty darn amazing. From early September to late October, the stock more than tripled - all while the rest of the tech sector was in the dumps... What fuelled the incredible rally? In a word, hype... As we noted in our bullish report on the company a few months ago, the stock was likely to be a big winner in this year's "holiday rally" given the explosive demand for PDAs and its superior execution.... While Briefing.com is still bullish on the company's long-term prospects, we can't say the same about the short-term outlook for the stock... For one, current valuations are insane, as HAND trades at nearly 26x sales, and isn't expected to be profitable until FY02... In addition, stocks that run in anticipation of holiday-related push, typically peak in November, early December (see 11/99 chart of eToys for example)... One look at the calendar shows that time could be running out on the incredible HAND rally... Yes, HAND could sustain its upward momentum for another couple of weeks, but trying to pick an exact top is dangerous business... We would rather move to the sidelines now, and wait for a better (re)entry point in the future. -- Robert Walberg, Briefing.com
tekboy@sorrytobebearerofbadnews.com
PS I LOVE my new Visor! I've been spending the last couple of weeks digitizing my life (an unfortunately necessary start-up cost for this erstwhile luddite), but the productivity gains are already starting to become apparent and I expect big things down the road. No handspring modules yet, but I did buy one of those keyboard thingies, which I'll report on when it comes... :0) |
