Palm's stock price is still DOUBLE what it was ~16 months ago. ;-)

On Fri, Mar 19, 2010 at 8:56 PM, Don Ferguson <[email protected]> wrote:
> Yikes?
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> Craig?
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> Cheers,
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> Don
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>
> From: [email protected] [mailto:[email protected]] On Behalf Of
> Troublemaker
> Sent: Friday, March 19, 2010 5:34 PM
> To: [email protected]
> Subject: [Treo] Article: Palm's Survival Questioned
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> http://snipurl.com/uxzpy
>
> Palm's survival questioned
>
> On Friday March 19, 2010, 11:01 am EDT
>
> NEW YORK (Reuters) - Shares of mobile phone maker Palm tumbled on Friday on
> questions over its ability to survive in a tough market dominated by Apple,
> Google and Research in Motion.
>
> Its shares fell 19 percent in early Nasdaq trading to their lowest level in
> more than a year after the company warned on Thursday that revenue for the
> current quarter would be far below Wall Street's expectations, amid tepid
> demand for its smartphones.
>
> In the third quarter, the maker of the Pre and Pixi shipped 960,000 units to
> carriers, but shoppers only purchased 408,000. It sees fourth-quarter
> revenue of less than $150 million, one-half of the $306 million expected by
> analysts surveyed by Thomson Reuters I/B/E/S.
>
> As a result, several analysts cut their price targets for Palm shares, and
> Kaufman Bros analyst Shaw Wu cut his rating on the shares to "sell" from
> "hold".
>
> "While we believe Palm has some value with its webOS (phone operating
> software platform)...we are unsure of the company's prospects as an ongoing
> concern," he said in a client note.
>
> Four analysts tracked by Thomson One data now rank the stock at "sell" or
> "underperform", and 9 others rate the stock at "hold."
>
> Canaccord Adams analyst Peter Misek, who has a "sell" rating, said Palm's
> troubles will likely accelerate as its partners question the company's
> solvency and withdraw their support.
>
> "With what appears to be roughly 12 months of cash on hand, an accelerating
> burn rate, a complete lack of earnings visibility, and substantial debt and
> preferred equity, we no longer see any value in the company's common
> equity," he said in a note.
>
> Palm has been the subject of chatter that it might be an acquisition target,
> with Microsoft Corp, Nokia and Dell Inc often mentioned as potential
> suitors. On a conference call with analysts, Palm chief executive Jon
> Rubinstein downplayed such talk.
>
> Palm shares fell to $4.56 on Nasdaq, where it was the second biggest
> percentage loser so far on Friday, and also the second most active stock.
>
> (Reporting by Franklin Paul)
>
> Copyright C 2010 Reuters Limited. All rights reserved.
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> [Non-text portions of this message have been removed]
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