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

To: TechieGuy-alt who wrote (2261)	10/19/2000 3:59:23 PM
From: David E. Taylor	Read Replies (2) \| Respond to of 6784

TG: IMO, P/S of 20 is getting to the outer limit for PALM. Dell gets 10% of sales to the bottom line, MSFT around 40%. Even if we assume (hypothetically) that PALM were getting say 20%, P/E on this FY revenues/earnings would be around 100. OTOH, at 100% growth rate, PEG would still only be around 1.0, not unreasonable. If you use the DELL efficiency of 10%, P/E would be 200 and PEG around 2, pretty high. At a P/S of 20, PALM would trade at around $70, so we're close to that right now. OTOH, if PALM can continue to grow revenues at 100%/year until 2003, then you could be sitting on a company with $16 billion in sales and a stock trading around $560 3 years from now. Roll that around your head for a while. David T.

To: TechieGuy-alt who wrote (2261)	10/20/2000 2:01:44 AM
From: greg nus	Read Replies (2) \| Respond to of 6784

Tech a few months ago on opening day some people were perfectly willing to pay up to $165 for 1.5 shares. Let the market be your guide for now not some trader trying to steeeeeeel your shares.Look institutions and plam lovers are putting away palm shares there just not available for sale. Good god!! Janus 20 fund just bought 5% of Palm. Do you know how many money market manages run there investments picks by copying the investment moves of Janus. Investment equity choices are limited. In the long run investors must decide between two choices buying a share in a good company at a poor price(high PE or PS)and hope it goes higher or buying a share in a poor company at a good price (low PE,PS) and hope it goes higher. Question is where woild you rather put your hope?