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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 (3894)	2/27/2001 9:09:36 PM
From: Tom R. Clarksburg	Read Replies (4) \| Respond to of 6784

My 3rd Quarter EPS and revenue estimate are increased: Hi David, I have decided to increase my financial model estimates for PALM revenues to $609 million from the previous $518 million and EPS to $.06/share from $.04/share, previously. The reason for my increase are: 1) Large shipments of PALM Vx made from Feb 24 to Feb 26. More large shipments will be made today and tomorrow, of which I will verify by this Friday. Today I checked with 16 inventory managers of several online websites and confirmed that since Saturday, all of these online retailers have each received an average of 6,500 units each of the Palm Vx and all of the managers expect 1 more additional shipment to arrive today or tomorrow (feb 28). This will put the last 4 day total shipment to about 400K to 450K units in the US-based online retailers and "brick and mortars" alone. International shipments of the Vx is anyone's guess, since I have not been able to get a good grasp at those sales. My previous estimates did not assume any large shipments of the Palm Vx until after the end of the quarter (Feb 28). These latest shipments along with my estimates of 500,000 unit shipments of the PALM VIIx in the quarter should put the ASP to around $230-235/ unit. Gross margins should go back up to 38% from 36% last quarter. I think the wall street analysts are purposely bringing down expectations for this quarter in order for Wall Street to reward PALM after they blow out all estimates. In this environment any stock that blows away estimates, will get immensely rewarded by The Street, and most of PALM analysts know that. I will again post on Friday or Saturday, after I get a more accurate feel of the latest Palm Vx shipments. By the way, even though my estimates seem high to you or perhaps others, I would not be surprised if PALM even beats these estimates, since this is turning out to be a super quarter! Lets see. Regards to all. TOM