Sweet Success

Investors Lick Their Lips

Palm Inc. went public on March 2, 2000, at $40 per share and hit $150 on its first day of trading. Today, its trading around $7.70. So whered all the investor interest go?

Well, a month after Palms IPO, another firm went public at $20 per share. Today, its trading at more than $50—90 times earnings. Krispy Kreme Doughnuts is doing fine.

Maybe food has more long-term profit potential than PDAs. Billionaire Warren Buffet has significant holdings in Sees Candies and International Dairy Queen, but he generally eschews technology stocks.