Investing in PalmSource Stock

TadW · 01-03-2005, 07:19 PM

Looks like a good deal at US $12.45.

What do you think?

Bob Russell · 01-03-2005, 08:21 PM

Hey TadW,
If I were going to make up a stock analysis without being a stock analyst, it would go something like this...

While it might be a nice sentimental buy, PalmSource (PSRC) is rated a hold on cbsmarketwatch, and it would concern me that the PE on CY Estimate is 32.09, which seems pretty high. The downside is big if they fail, or are forced to layoff too many developers when the PalmOne contract is up, and that could force them into a niche market or to sell off cheap.

On the upside, with competition everywhere, it's hard to see it exploding too much near-term unless smartphone revenues explode, so it seems like all the movement would be downside, especially in the next year or so until we see if Palm on Linux can save them.

But if you guess right and they succeed, which is what we are hoping for, you could get rich in 5-10 years if smartphone makers are dominated by PalmOS offerings!

Of course, anyone that actually uses this silly comment as if it was wisdom and actually invests money deserves to lose it!

01-03-2005, 07:19 PM	#1
TadW Uebermensch Posts: 2,583 Karma: 1094606 Join Date: Jul 2003 Location: Italy Device: Kindle	Investing in PalmSource Stock Looks like a good deal at US $12.45. What do you think?

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01-03-2005, 08:21 PM	#2
Bob Russell Recovering Gadget Addict Posts: 5,381 Karma: 676161 Join Date: May 2004 Location: Pittsburgh, PA Device: iPad	Hey TadW, If I were going to make up a stock analysis without being a stock analyst, it would go something like this... While it might be a nice sentimental buy, PalmSource (PSRC) is rated a hold on cbsmarketwatch, and it would concern me that the PE on CY Estimate is 32.09, which seems pretty high. The downside is big if they fail, or are forced to layoff too many developers when the PalmOne contract is up, and that could force them into a niche market or to sell off cheap. On the upside, with competition everywhere, it's hard to see it exploding too much near-term unless smartphone revenues explode, so it seems like all the movement would be downside, especially in the next year or so until we see if Palm on Linux can save them. But if you guess right and they succeed, which is what we are hoping for, you could get rich in 5-10 years if smartphone makers are dominated by PalmOS offerings! Of course, anyone that actually uses this silly comment as if it was wisdom and actually invests money deserves to lose it!

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