Sure Palm's results were not that great, and that's most of the problem. However, it must also be pointed out that so-called "analysts" and "speculators" just make things worse.
-- Michael On 3/19/2010 6:33 PM, Troublemaker wrote: > 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 © 2010 Reuters Limited. All rights reserved. > > > > ------------------------------------ > > Yahoo! Groups Links > > > > >
