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

To: Mang Cheng who wrote (3607)	1/30/2001 2:19:31 AM
From: Mang Cheng	Respond to of 6784

Excerpt from the Morgan S D W report: "Valuation" "We rate PALM Strong Buy with a target price of $70. Our target price assumes PALM could trade at approximately 16.5 times calendar 2001E revenues. We believe there is a secular shift toward mobile computing that benefits PALM and makes it a must-own stock. In our view, PALM is suitable for investors with a tolerance for the volatility associated with technology stocks. Key Investment Positives • Large market opportunity. Palm is playing in a market that is expected to approach 1 billion units in 2003 in terms of hardware (including smart phones, entertainment devices, handheld devices, and advanced digital phones), not to mention the opportunities in software and services surrounding these devices. • Solid demand. Palm has the largest installed base in the mobile Internet, based on 10.9 million units shipped as of December 2000. In addition, one good measure of platform leadership is software support from outside developers. Palm’s developer community has grown to more than 135,000 (up from 100,000 at the end of the first quarter of 2000). • Software licensing opportunities. Palm licenses its OS to other handheld device companies, including Handspring (HAND, $48, not covered), Nokia (NOK, Neutral, $39, covered by Angela Dean), and Sony (SNE, $76, Outperform, covered by Takatoshi Yamamoto). While Handspring products compete with Palm products, Handspring sales translate into licensing revenue for Palm. • Wireless strategy. The company plans to provide Palm customers three ways to access the Internet wirelessly: (1) using a mobile Internet kit that connects a Palm device to a mobile phone; (2) using a wireless sled; and (3) using a device that fully integrates the wireless hardware. In addition, Palm signed a deal with Sprint PCS (PCS, $32, Strong Buy, covered by Colette Fleming) that expands Palm’s wireless offering to a CDMA network. The partnership is not exclusive, and we expect Palm to strike similar partnerships with other service providers in and outside of the United States. Palm already has a partnership with NTT DoCoMo (NTDMY, $103, covered by Hironori Tanaka) in Japan to integrate Palm’s wireless application technologies with NTT DoCoMo’s wireless network infrastructure. • International opportunities. International markets for handheld devices are expected to grow faster than the US market. International revenues represented 38% of sales in the third quarter. • Enterprise opportunities. Palm is working with enterprise-software vendors such as Oracle to develop applications that provide access to enterprise databases using devices on the Palm platform. Of the 135,000 developers supporting the Palm platform, two-thirds are enterprise application developers. Palm is now actively supported at 123 Fortune 500 companies. multexinvestor.com

To: Mang Cheng who wrote (3607)	1/30/2001 8:31:23 AM
From: Win-Lose-Draw	Respond to of 6784

Ericy is getting out of the handheld business What??? Where on earth did you read this??? Ericsson has announced no such thing.

To: Mang Cheng who wrote (3607)	1/30/2001 8:49:07 AM
From: David E. Taylor	Respond to of 6784

Mang: I don't think Symbian is dead, at least not yet. Technically, they seem to have developed a robust communications OS platform with multi-tasking capabilities in EPOC, and while Palm OS 4 seems to fill some gaps, it won't be until OS 5 is released that Palm will have something comparable. If they get it out in 2002, it'll be just in time, hopefully they can do it. I don't know enough and haven't read enough to compare EPOC with Palm's projected OS 5, but that's the gist of what I've read. Maybe Khan or someone else with more knowledge of OS's than I can comment on EPOC vs. Palm OS 5. ERICY isn't getting out of handsets, in fact Advalorem posted yesterday the upcoming cell phone/communicators slated for market in the next few months, and they included the Ericsson R380 which uses the Symbian OS: Message 15265826 Also NOK's offering is reported to have EPOC as the underlying OS with the Palm UI layered on top. I agree with you on MOT, they've apparently decided to put the OS for their advanced Communicator offering solely in Palm's hands. It may be that Palm will eventually bury Symbian, but not IMO for a few years. David T.