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Technology Stocks : PUMA Technology -- Ignore unavailable to you. Want to Upgrade?

To: Rarebird who wrote (721)	1/17/2000 12:09:00 AM
From: Ted M	Read Replies (1) \| Respond to of 851

Rarebird, congrats to you on your success with PUMA. I don't have a strong conviction as to what PUMA will do over the next year or so. It's not trading near book value anymore. It has little earnings and low (although increasing rapidly) revenues. And, momentum has definitely stopped and reversed in the last week. All of these factors argue for overvaluation. However, PUMA is considered to be the leader in mobile wireless synchronization technology, which is said to have huge growth potential. PUMA's market cap is about $1 Billion. Other early leaders of large potential markets (RNWK, EGRP, GLBX come to mind) command market caps many times more than PUMA. So, from a relative price/potential standpoint it seems to me that PUMA may have quite a bit more to go. All I meant by saying it is too early to say the ride is over was just that. As it would be to say it is that the ride is just beginning. Only the market will tell for sure. As to those who bought at 140 they were perhaps foolish if they were buying on momentum only and perhaps smart if they had a longer term horizon. I bought at around 3-4 one and two years ago for reasons other than momentum. I bought on fundamentals and price appreciation potential. Not momentum. I sold half and 6 and another 45% at 15 (damn!) and have let the rest ride. Frankly, I'm more used to owning low priced shares so this is definitely a new experience for me. I really was not suggesting what I thought the price will do at this point--more of a comment that there are reasons behind momentum and while it is rare for stocks to become 10 baggers (much less 30 baggers!) the pullback is really only a week old so the ride may be over for a few more weeks but there are some reasons to believe this may be a long term winner beyond 1999's performance. Best of success to you in finding the next one to ride. Ted