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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 (4292)	3/19/2001 12:55:58 PM
From: Win-Lose-Draw	Read Replies (2) \| Respond to of 6784

David, It occured to me that when I've expressed concern about PALM's margins, I had a different "margin" in mind than you might have thought. What I'm referring to is the ratio between income available to common and sales. For PALM that ratio is ~ 61 million / 1.6 billion or about 4%. As a comparison, MSFT's ratio is around 40%, CSCO is +12%, ORCL +50%, etc etc etc. That is what really concerns me: that PALM, in the midst of enormous growth, is really not very profitable. I don't buy the excuse that they have high development expenses, because ALL tech companies have high development expenses. Look at a company like Nokia that generates 24% ROA and 47% ROE and compare it to PALM's 6% and 9% respectively. And so the question remains in my mind: if PALM can't be insanely profitable now, when can it be?