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

To: mr.mark who wrote (2251)	10/19/2000 1:45:00 PM
From: TechieGuy-alt	Read Replies (2) \| Respond to of 6784

...and a 19 times conservative multiple belongs a... What multiple might that be? Surely not P/E! P/Sales ? and 19 times is conservative? TG

To: mr.mark who wrote (2251)	10/19/2000 2:03:24 PM
From: David E. Taylor	Respond to of 6784

Mark: Open interest on the Oct $60 calls is only 5458 contracts on two screens I checked, and I can't see that affecting PALM's near term action much. Whether or not those who sold covered calls will have their stock called away depends on the premium that was paid for the call option. They are currently selling for $1.25, but they've been as high as $2.25 this morning. Anyone who paid $2.25 for an October $60 strike call isn't going to exercise unless PALM runs over $62.25. I think PALM's present "taking a breather" action is just the result of a temporary drying up of buyers. PALM was around $40 a week or so ago and $50 just yesterday morning, and it's been a pretty decent run to $60. Traders are taking profits and we need new traders/buyers who think it's going to move higher near term or longer term investors who think they'd better get on board now before it's too late. Failing that, we need more good news - like a Nokia announcement that they're bringing out a Palm enabled phone next year! Didn't make the double on my $55 calls yet, but they're Nov's so I'm giving PALM a chance to get to $62+ before selling them. If we don't move higher in the next few days, another retracement is in the cards, probably down to the low $50's. OTOH, DR's TA guy is still saying $70+ on this run, and he's right more often than he's wrong, FWIW. JMO. David T.