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Technology Stocks : PALM - The rebirth of Palm Inc. -- Ignore unavailable to you. Want to Upgrade?

To: David E. Taylor who wrote (2221)	10/18/2000 10:30:44 PM
From: KevRupert	Read Replies (1) \| Respond to of 6784

David, excellent summary! Sincerely -- thank you. ad

To: David E. Taylor who wrote (2221)	10/18/2000 10:37:18 PM
From: David E. Taylor	Respond to of 6784

Hmmm. I noticed a typo in that post: I expect HAND to post impressive revenue growth of 455 to 60% sequentially Q2/Q1 should of course read: I expect HAND to post impressive revenue growth of 45% to 60% sequentially Q2/Q1 Guess it was obvious but I'd hate to mislead anyone. David T.

To: David E. Taylor who wrote (2221)	10/18/2000 11:02:53 PM
From: TechieGuy-alt	Read Replies (2) \| Respond to of 6784

Good analysis. Thanks for posting it. Now cound't you have posted this when HAND was at ~$50 a few weeks ago!!! :) The rate at which HAND has been taking off. Whew. Amazing. Unfortunately I don't own any. But I own PALM. TG

To: David E. Taylor who wrote (2221)	10/18/2000 11:30:33 PM
From: Mang Cheng	Read Replies (1) \| Respond to of 6784

David, Hand has 180 million in cash so losing 8 millions in a qtr is really not very serious - Hand will need 5.6 years to burn thro' all that money. Hand definitely need to increase its revenue to cover the SGA expense of 27 millions. The $13 fee that you arrived at is most probably quite accurate. I arrived at a similar number from a different angle. From an article I read before about licensing fee Qcom is going to collect from handset maker, the assumption is 5% of revenue. So let say the ASP for Hand is $250, 250 * 0.05 = 12.5 which is very close to your $13. Maybe Hand has a higher ASP ? Do you know what is the ASP for Hand ? But the $13 paid to Palm is well worth the money because Hand avoided paying for the major R&D but got ALL the benefits of the Palm platform. Hand only spent 5 millions on R&D while Palm spent 30 millions in the latest qtr. The roughly 4 millions Hand paid to Palm as licensing fee was really small and barely covered a small portion of R&D of Palm. Overall, Hand and Sony are getting free-rides out of Palm. Palm is really not getting any significant benefits from all these licensings right now - and not even in the forseeable future. It costs a lot of money to move an OS ahead and most likey Hand and Sony had promised to contribute to its development. That's why Hand is surging ahead like crazy while Palm is still quite hesitating. Because ultimately, Hand is perceived to be in a more flexible position than Palm to exploit the fast expanding handheld market. Hand can even theoretically make a WinCe Hand if they see fit to do so - not that I think they would. Mang