PALM is SUPER BUYING FRENZY as bounces back. Beat Earnings (doubled $.01 with $.02). When you look at the Q4 low visibility outlook, I would agree that the CEO and CFO maybe ought to be fired for lack of the fiduciary duty of LOYALITY, but I will make this prediction, that PALM will meet and beat its OLD projected earnings forecast for the 4th quarter, and GREATLY EXCEED the lame lower guidance the weak voice heard at the conference call Tuesday put forth. The Economy is rebounding faster than PALM's lower visibility, in fact Consumer confidence is up for the first time since September, and it will be these CONFIDENT CONSUMERS that return to buying PALMs and my second prediction is that the inventory backlog will be totally dissipated by year end, and that this Christmas will again find PALM unable to meet all the excessive demand for its products, running out of inventory again. Of course then the un-brave Management will take its bows, but remember they did not have the courage to put out PROPER optimisstic guindance BECAUSE pessimisstic guindance is easy to beat. A Monkey could beat their lower estimates going forward. I do not own PALM for the weak mindedness of theis management team, if it was PURELY MANAGEMENT then I would have purchase HANDspring instead, since the better founders left PALM to found HANDspring which is the number 2 market share in this industry but still far behind PALM. No I bought PALM and still am a BUYER because the PRODUCT SELL ITSELF, and it has 75% growth even now, and will capture and continue to capture the majority of market share in every market it enters, not because of the Management, but because IN SPITE OF THE MANAGEMENT, the PALM products are the best products and at the best price points, priced to sell. I have no lowered my target price, this stock is still going to brak its 52 week high. You still have to ask yourself the basic question, how long before this company doubles (Rule of 72 divided by growth percentages) (or PEG, or EPS GROWTH). This company will never o under, so it will hit is 52 week high, and at its growht rate, it will recover to beyiond its 52 week highs before other technokogy companies that are not in such a high market growth sector as PALM will, even the blue-est blue chip CHIP-stocks will not double, and double again as fast as PALM, or as you allude, NTAP.
The recovery of the market always FAVORS GROWTH. PALM still has GROWTH. Thats the real guidance going forward, that and comparision to stagnate or slower growing companies. Of course, you can always bury your money in your back yard....
I am,
Truly your$,
-Crystal Ball
at $10 this will be the quickest 50% profit (ROI) I ever make. |
