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Technology Stocks : PALM - The rebirth of Palm Inc.
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To: Happy Harry who wrote (3297)1/6/2001 5:51:53 PM
From: lkj  Read Replies (3) of 6784
 
So with all the good news including earnings, why are we tanking at such a pace?

Hi Happy Harry,

First of all, any high PE company is associated with great volatility, so it's no surprise that Palm has not done so well lately. More important, last earning announcement was not as strong as expected. Even worse is that the current quarter will have a decrease in revenue from the last quarter. Last time this happenned was exactly two years ago. The fact is that this quarter is far from over, so it's not a sure thing that sales is not going to top last quarter.

With this said, what should we expect out of this stock? Some smart people such as Andre Williamson has suggested that Palm will not go up much until the PE catches up, which may take two years or even longer. Then there are bulls like me who think this stock can easily be trading in the $50 to $100 range in the latter half of this year. My reason is that Palm will never have a reasonable PE until the revenue growth slows to 30% or less. This may not happen in the next ten years. Simply put, Palm is more likely to be the next Microsoft than anyone. If Palm really works out to be, this stock has got to be the biggest bargin in this tech stock sell off.

Regards,

Khan
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