Results 1 to 13 of 13
  1. jg70124's Avatar
    Posts
    326 Posts
    Global Posts
    328 Global Posts
       #1  
    Snipped from the Wall Street Journal this morning:
    ======================

    Facing More Competition, Palm Explores Options
    By DENNIS K. BERMAN and PUI-WING TAM
    March 5, 2007; Page B4

    Palm Inc., maker of the Treo smart phone, is working with investment bankers to explore its strategic options. The Sunnyvale, Calif., company is working with Morgan Stanley to evaluate options ranging from a sale, an investment by private equity or a purchase of its own, people familiar with the matter say.

    A Palm spokeswoman said the company doesn't comment "on rumor and speculation."

    Palm has been the subject of relentless rumors that it is a takeover target. ... [The company] faces intense competition in the cellphone industry. With a market capitalization of less than $2 billion, Palm is considered a tiny player compared with giants such as Motorola Inc. and Nokia Corp.

    What's more, Motorola and Nokia have introduced products similar to Palm's Treo, which combines a cellphone with a hand-held computer. Apple Inc. will introduce a cellphone this year that is expected to increase the competitive stakes.

    Palm also has had trouble selling its Treo to corporations, where Research In Motion Ltd.'s BlackBerry is entrenched.

    In February 2006, one of Palm's biggest individual shareholders, Mark Nelson, sent a letter to the board urging directors to explore a sale of the company. Mr. Nelson, who owned more than 6% of Palm's shares at the time, said the company was in a competitive market that faced "slowing innovation, commoditization and choked margins." In November 2005, another major shareholder, Swiss hedge fund Sagio Investments SA, wrote a letter to the board decrying the company's stock price at the time.

    A person familiar with Palm said a sale of the company wasn't on the table as of late last year because Ed Colligan, Palm's chief executive, wanted to keep the company independent. Since then, the competitive landscape has grown harsher with news of Apple's imminent entry into cellphones.

    Friday, Palm's stock soared $1.81, up nearly 11% in 4 p.m. Nasdaq composite trading to $18.30 on Wall Street talk and a report on Web site Unstrung that the company was near a deal with Nokia. A person close to the matter said a Nokia deal was far from certain but noted that Palm was trying to explore its options.

    For its second quarter ended in November, Palm reported a 95% drop in net income, largely due to a year-earlier tax gain and a 12% drop in revenue. It also lowered its outlook. The situation was compounded by the delay of a key product, the Treo 750, because of certification issues with carriers.

    The company also said it had more than $500 million in cash. Mr. Colligan has talked about using some of that cash for acquisitions.
  2. dpc
    dpc is offline
    dpc's Avatar
    Posts
    433 Posts
    Global Posts
    439 Global Posts
    #2  
    ok, so we have this news and the recent interview with jeff hawkins over at palmaddicts. who are we to believe? I would side with The Hawk on this, but then again, he did say that he's not really involved with the financial end of things.
  3. jg70124's Avatar
    Posts
    326 Posts
    Global Posts
    328 Global Posts
       #3  
    Likely that both are correct: Hawkins is surely working on new products and technologies. Meanwhile, the management of the company is surely looking at ways to optimize shareholder value like selling the company, merging, or buying a competitor.

    Hawkins says the company "is in the best shape it’s been in, in a long, long time" - that's the perfect time to do a deal.
  4. #4  
    I'm so torn by this. Palm independent means creativity won't be stifled by bureaucracy like at Moto. (Well there is LESS bureaucracy at Palm prolly than at Moto). But Palm simply does not have the capital to survive. Nor does it have the magic bullet like RIM to make it competitive.

    Coke and Pepsi. Cingy and VZW. Duopoly. That is where we are going. Nokia vs. who?

    The smart acquirer might keep the best parts of Palm as a skunk works.
  5. vw2002's Avatar
    Posts
    904 Posts
    Global Posts
    939 Global Posts
    #5  
    straight jab by motorola Q, powerful hook by the rimm blackberry. The apple iphone delivers a devastating roundhouse and down goes palm... referee (nokia)begins the standing eight count, and evaluates the vacant look in palm's eyes.....

    TKO in the works folks....
    Last edited by vw2002; 03/05/2007 at 11:45 AM.
    I gotta have more cowbell
  6. #6  
    hopefully that "TKO" you refer to will also yeild a TKO killer app or design once its all said and done.
    ONE can be spelled as NEO.
    There is no spoon.
  7. vw2002's Avatar
    Posts
    904 Posts
    Global Posts
    939 Global Posts
    #7  
    Quote Originally Posted by Hdhntr23 View Post
    hopefully that "TKO" you refer to will also yeild a TKO killer app or design once its all said and done.
    agreed.
    I gotta have more cowbell
  8. cgk
    cgk is offline
    cgk's Avatar
    Posts
    3,868 Posts
    Global Posts
    9,556 Global Posts
    #8  
    JPMorgan analyst Paul Coster downgraded the stock to "Underweight" from "Neutral." He said he doubts Nokia Corp. will buy the company, as rumored Friday, and called Palm a bigger risk at its current price. The company is not offering new products, he said, and is cutting prices to deal with competition, reducing its margins.

    When the company reports its fiscal third-quarter results on March 22, Coster expects "gloomy results and guidance."
    http://www.businessweek.com/ap/finan.../D8NM1FLO1.htm
  9. #9  
    So the stock price is back to normal?

    That doesn't sound good.
  10. #10  
    Quote Originally Posted by vw2002 View Post
    agreed.

    doubly agreed! and soon enough we'll have a Treo form factor, screen res, wifi, battery, etc etc etc, that can keep up with today's more current and modern devices.

    palm stock down $1.49 to 16.81.......hard to say that "private equity" is looking at it or that the company is in "the best shape that it's ever been in"
    Blackberry Pearl (AT&T), Apple 3G iPhone,
    owned and used: Treo 750 (WM5, Cingular)
    T680 unlocked (T-Mo), T700wx, T700w, T650, T600
    ppc6600, i730, htc mogul, BB Bold, Curve
  11. #11  
  12. #12  
    Quote Originally Posted by dpc View Post
    ok, so we have this news and the recent interview with jeff hawkins over at palmaddicts. who are we to believe? I would side with The Hawk on this, but then again, he did say that he's not really involved with the financial end of things.

    But Jeff surely would know if the company is up for sale. After all, he is Mr. Palm.
  13. #13  
    WOW. I've been away from TC for awhile and come back to this. I've been a Palm user for years. Looks pretty bad for Palm. For the first time, I am actually starting to consider the iPhone as Apple will likely last longer than Palm does.
    Palm IIIx>Palm Vx>Palm m515>Tungsten T>Tungsten C>Verizon Treo 650
    ................................StarTAC 7868W>Motorola V710>Verizon Treo 650>Treo 700p>Apple iPhone 3G

Posting Permissions