Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: Moonray who wrote (20521)	3/27/2000 11:08:00 AM
From: speculatingvalue	Read Replies (1) \| Respond to of 22053

You can't just look at earnings. If you take the value of the Palm holdings, COMS is undervalued. It would be cheaper for someone who likes Palm to get exposure to it through COMS. This should make COMS run in the short term. The massive cost cutting and reorganization isn't reflected in the earnings. The company has shed its baggage and is lean and focussed. I see a short term target of $80. "said Palm's share price will be linked to parent company 3Com Corp.'s <COMS.O> through August and said the arbitrage between the two stocks could push Palm lower, 3Com higher, or both."

To: Moonray who wrote (20521)	3/27/2000 11:24:00 AM
From: David E. Taylor	Respond to of 22053

Moonray: IMO, P/S used by ML is probably a better metric for an "infant" company like PALM than P/E. But even there, with FY 2000 sales at around $1.1 billion, an assumed 50% Y/Y growth rate giving about $1.7 billion in FY 2001 sales, a price of 65 still gives you a forward P/S of about 22. To get to 80, you need a P/S around 27, about what RIMM is trading at. Ambitious but doable, and highly dependent on hype and the fact that PALM is still tied to the elephant COMS, which still seems the better way to get PALM than buying PALM directly. David T.