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

To: Happy Harry who wrote (3297)	1/6/2001 1:23:35 PM
From: FNS	Read Replies (1) \| Respond to of 6784

Happy Harry: re <So with all the good news including earnings, why are we tanking at such a pace?> Good Q! Street attitude seems to have changed regarding high PE stocks. And most importantly, on CNBC last evening around 7 PM, the PDA was one of the subjects, and Jane Wells (I think) stated (like warned!) that these companies are high PE's, indicating PALM at 200 and RIMM over 1000! This may all be true but when the viewer listens to her comments as provided, one can only come away with a perception that these stocks (HAND, RIMM, and PALM, as mentioned) are over priced....further, MSFT pocket pc was mentioned along with CPQ using the MSFT pda os as major competitors... but another person indicated that PALM was indeed currently ahead of MSFT in PDA sales! Bottom line, I thought the PDA feature as reported did not present an accurate current and future growth picture of PALM pda situation and why it may be trading at a high PE. I also heard another comment in response to a question by a caller made during the day (by a featured person on buy, sell, or hold)...his comment to the caller asking about PALM was, "Buy the gadget but not the stock", again, due to a high PE! Hopefully, PALM will come through and continue to demand a high PE. I'm not so confidant about Hand or RIMM due to my perception of them as a more commodity driven type company. All this in IMHO! Hope the conference helps. Still hanging in with PALM. fns

To: Happy Harry who wrote (3297)	1/6/2001 5:51:53 PM
From: lkj	Read Replies (3) \| Respond to of 6784

So with all the good news including earnings, why are we tanking at such a pace? Hi Happy Harry, First of all, any high PE company is associated with great volatility, so it's no surprise that Palm has not done so well lately. More important, last earning announcement was not as strong as expected. Even worse is that the current quarter will have a decrease in revenue from the last quarter. Last time this happenned was exactly two years ago. The fact is that this quarter is far from over, so it's not a sure thing that sales is not going to top last quarter. With this said, what should we expect out of this stock? Some smart people such as Andre Williamson has suggested that Palm will not go up much until the PE catches up, which may take two years or even longer. Then there are bulls like me who think this stock can easily be trading in the $50 to $100 range in the latter half of this year. My reason is that Palm will never have a reasonable PE until the revenue growth slows to 30% or less. This may not happen in the next ten years. Simply put, Palm is more likely to be the next Microsoft than anyone. If Palm really works out to be, this stock has got to be the biggest bargin in this tech stock sell off. Regards, Khan