To: Win-Lose-Draw who wrote (4253 ) 3/19/2001 11:54:13 AM From: Crystal ball Read Replies (1) | Respond to Growing markets make deserving higher P/E. PALM has kicked A** these past 2 or 3 weeks, capturing HUGE NEW MARKET SHARES. Just review the last months news articles, DoCoMo, Canon for over 50% of the Japanese markets, over 70 to 95% of the US and European markets, depending on which devices and markets you use, Convergence with PALMs built right into Kyocera Smartphones, they can't make PALMs fast enough, they very generously are expanding their PALM OS systems software beyond the 1000s of software applications and into convergence and portability through licensing ROYALTY deals with HANDspring, Rimm Blueberry, bluetooth, and Sonly CLIE (is the playstation far behind with Sony play anyone anywhere with PALMs), etc etc. PALM is cheap now, but over the next year or so, when these market shares generate huge uncreases in EARNINGS the price of $68 will be cheap, with a lowered P/E ration compared to thiose much HIGHER EARNINGS that are a given. That is why future porjected earnings and future PEG ratios that take into account future estimated EPS GROWTH are always the correct way to measure these high tech stocks. These stocks do have an upper limit, a ceiling, of how much or how many units they will sell, they are not commodities like oil, or sugar, etc, with ceilings on the total size of their market, there presently is, for the size of PALM no relative limit or ceiling on its future market space. GROWTH GROWTH and yet more GROWTH. It is just starting it market penetration, just watch it grow. If you invest in any other kind of company, like EOM, or GM or anything else, there is a finite limit on how much or how many they do and can sell, they are commodity-LIKE and have no growth, they will all tumble, they are only being used as short term safe havens, and once this market event is over with, they will drop like a rock, I would never invest in them, because you might not get to the exits before the large institutional investors do, which means you will be holding an EOM or GM or the like when they get cut in half, and halved again and lay there stagnate, with no way out since their markets are shrinking, not growing, and with that, their prospects are shrinking too. If OIL was king, OPEC would not have to cut production, but face it, there is less demand, NEGATIVE OIL GROWTH. Storage, like NTAP is another GROWTH STORY. Put your money where you want.
