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

To: lkj who wrote (5334)	7/27/2001 3:20:34 PM
From: lkj	Read Replies (1) \| Respond to of 6784

David C. Nagel, Ph.D. President and Chief Technology Officer AT&T Labs (From Palm's 2000 Annual Report)

To: lkj who wrote (5334)	7/27/2001 3:32:39 PM
From: lkj	Respond to of 6784

Clearly, Palm Inc. felt the urgency that we all have. The management have thought of the following when decided not to spin off the software unit: 1) Surviving as a pure OS company may be tough. (May of you thinks so. I disagree.) 2) Palm OS is so strategic to Palm Inc. that the management is still not willing to let go full control. The management wants to see how the new independent model will work, then decide to go further with a spin off or not. 3) Considering the market condition, spinning off the OS right now doesn't generate the deserved cash. Wait for six months, we may see a 2x, 3x, or 4x gain on the valuation. By reporting the independent numbers for a couple of quarters, both the management and the investors would have a better idea of the strength of the OS business. Khan