Intellectual Capital/Knowledge Management LO24213

From: Eugene Taurman (
Date: 03/20/00

Replying to LO24199 --

The value of a stock of a company has and is based on it's potential for
future earnings.

The potential for future earnings is real but the opinions of investors
are a combination of insight, emotions, opinions about the market,
reactions to news, reads on other investor moves, and a myriad of other
factors. All of these and more drive the value of stock but under it all
the potential for future earnings and the opinions about that drive stock

Fear and lust drive the short terms stock moves more than long term
assessment of value but still value will in the long run.

Intellectual capital has always been reflected in the excess value of the
company over its liquidation value. Accountants have for many years called
them intangible assets. In a healthy company the value hard assets is less
than the stock value this difference is the value of the intangibles
assets and are often worth more than the hard assets.

PALM Investors placed high value on the intangible assets of the company.
Just like many other new ventures. The major value to Palm is the
intellect that put their product in the right market and the right time
now if the have the balance of intellectual assets to deliver the good s
and evolve perhaps the investors will be proven right to drive the stock
so high.

Personally I think too many new offerings place too much value on the
intangible assets but a few like Dell, Microsoft and looking back a few
years AT&T paid off. So we will all be looking for the big one. again.


Eugene Taurman

>It is interesting that in a post modern, post enlightenment world that
>technocratic models would still be postulated. I am interested in whether
>this is a prevalent model and where the measure/control paradigm still
>has currency
>With the public offering of Palm stock and the often mentioned public
>spin out of the Sabre system, we can essentially dismiss the ability to
>link ic or knowledge value as a function between the market price of
>stock and the hard assets of a company.


"Eugene Taurman" <>

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