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

To: Crystal ball who wrote (4245)3/16/2001 3:24:56 PM
From: David E. Taylor  Read Replies (2) | Respond to of 6784
 
CB:

Your math is OK but some of your "data" are out of whack:

(1) As of 12/1/2000, Palm had 571.6 million shares outstanding, not 355.5 million.

(2) Palm sold 2.1 million devices in Q2 (a run rate of about 8-9 million/year going forwards), to bring the lifetime total to almost 11 million. Handspring has sold about 1 million total on top of that. I don't know where you get 33 million sold from.

(3) Palm's blended ASP for its devices is $212, not $400.

(4) So to get to a P/S of 2 (the number you came up), and allowing for accessories, OS, content and access revenues, Palm needs to sell around 160 million Palm's this year. That's a lot of Palm's - about 35% the number of wireless handset sales expected worldwide this year.

David T.



To: Crystal ball who wrote (4245)3/16/2001 5:37:38 PM
From: Win-Lose-Draw  Read Replies (2) | Respond to of 6784
 
60,426,500 PALM Vx or PALM VIIx at $400 each

CB, it was an exxageration, poetic license if you will. And no offense, but you are aware that a majority of people on this planet can't even get a regular healthy meal, right? How on earth do you expect those people to afford Palm Vs? For an idea of the potential size of Palm's market, look to the handset market.

At $68 PALM has a P/E well over 500. That is an absolutely insane valuation.


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