Page 2 of 2 FirstFirst 12
Results 21 to 37 of 37
  1. #21  
    Quote Originally Posted by samkim View Post
    If it's trading in the $17 range, that includes the dividend. If it's trading in the $8 range, that excludes the dividend. The deal is subject to approvals, so the dividend won't happen for a while. When it does, the price will drop around $9 overnight.
    Thanks a lot. So Why should they give out dividend since it is nothing like bonus? Those shareholders can sell stocks by themselves. Those dividens must be taxable too.
    Treo 750 unbranded T-mobile, HTC WIZARD 8125 T-MOBILE (broken), Treo 650 T-mobile 1.43/1.14 OS 5.4.8 Garnet (sold).
    Dell X50v, X30 624Mhz and HP ipaq h2210 h1945.

    Treo 750 hacks thread.
  2. #22  
    Quote Originally Posted by cellneuron View Post
    Thanks a lot. So Why should they give out dividend since it is nothing like bonus? Those shareholders can sell stocks by themselves. Those dividens must be taxable too.
    An analogy is, Would you prefer to make $1 from $10 in the bank, or $.80 from $5 in the bank?

    Paying out the huge dividend reduces Palm's cash position (and equity) but will result in almost the same profit (minus interest expenses); this dramatically increases the "return on equity." As a shareholder, you can take that dividend and invest it in something else (or even right back into Palm).

    When a shareholder just sells the stock on the market, it's bought by another shareholder, so Palm's position doesn't change.

    Paying a cash dividend is theoretically the same as having the company buy back stock ("share repurchase"). In this case, the shareholders are selling the stock to the company. However, that would be treated for tax purposes as capital gains instead of a dividend, at least in the US.
  3. #23  
    Quote Originally Posted by surur View Post
    And people keep saying Palm is not in trouble. Would a healthy company with great prospects sitting on a $500 million money heap and 11 profitable quarters need to do this? Most of the supposed financial success of the company is smoke and mirrors, and hide the under-investment in product development that has been endemic in Palm. Just look at how much better the 755p is vs the 700p (not!)

    Surur
    It is apparent that you don't know much about corporate finance. What Palm did was a recapitalization that will return a lot of cash to existing shareholders. My guess is that palm may have gotten pressure from shareholders to realize shareholder value now. It is not a LBO, because palm was not bought out.

    And if you pay attention to what the Elavation partners said during the conference all today, you would have realized that they put up $300+ million because they believe Palm's future is bright. Can they be wrong? Of course, but they did a lot of due diligence and saw palm's product roadmap, and they put their money where their mouth is. So who is more credible here? You or the Elavation partners?

    My money is on the elavation boys.
  4. #24  
    Quote Originally Posted by Rome View Post
    It is apparent that you don't know much about corporate finance. What Palm did was a recapitalization that will return a lot of cash to existing shareholders. My guess is that palm may have gotten pressure from shareholders to realize shareholder value now. It is not a LBO, because palm was not bought out.

    And if you pay attention to what the Elavation partners said during the conference all today, you would have realized that they put up $300+ million because they believe Palm's future is bright. Can they be wrong? Of course, but they did a lot of due diligence and saw palm's product roadmap, and they put their money where their mouth is. So who is more credible here? You or the Elavation partners?

    My money is on the elavation boys.
    Did they believe Palm's future is bright, or that they can fix Palm, so its future could be brighter?

    Are you telling me no-one wanted to buy Palm at $1.4 billion because their future was too bright?

    I guess you have to be a very special kind of person to see that brilliance.

    Surur
  5. #25  
    Only problem with these theories is that $400MM in debt. Instead of leveraging Palm's strong cash position and investing it in R&D or in targeted acquisitions, the new management thought that its shareholders would get greater return by simply cashing out. To me, that says that they expect to underperform the market.

    Of course, one must ask what Palm has been doing with all that cash -- why weren't they investing it in R&D?
  6. #26  
    Quote Originally Posted by tftp View Post
    Only problem with these theories is that $400MM in debt. Instead of leveraging Palm's strong cash position and investing it in R&D or in targeted acquisitions, the new management thought that its shareholders would get greater return by simply cashing out. To me, that says that they expect to underperform the market.
    Um, no. They definitely don't expect to underperform the market.

    Of course, one must ask what Palm has been doing with all that cash -- why weren't they investing it in R&D?
    How much do you think they invest in R&D? How much is the appropriate amount?
  7. #27  
    Quote Originally Posted by samkim View Post
    How much do you think they invest in R&D? How much is the appropriate amount?
    They are not exactly cutting edge, and are often criticized for using old technology, so the answer would seem to be "not enough" and "more".

    Surur
  8. #28  
    I’m not even sorry for them but if I had the money id buy them & the first thing I would do is give every model Wi-Fi drivers, develop a Palm 4GB Wi-Fi card, Make an updated patch for all the Treo 650 owners to use 4GB SD cards along with the new Wi-fi card as an apology for screwing them over, Switch back to Using SD cards instead of mini SD (AKA) Micro SD, Give all the current Treo's a VGA out, Strengthen IR power & make a kit with a foldable portable docking station like Palm's Wireless Keyboard with Bluetooth but include the life drives monitor and a battery that people could use to replace their battery & be used to charge the Treo while docked. Furthermore id would make this thing of flexible solar panels so that It could self charge.

    If Palm did all this as well as give the Treo it a 4 Mp camera they would be #1 Again.

    notice I'm not even looking for a more powerful processor, more memory or wantting to make the device smaller?

    Here you go Palm. Make this. As a matter of a fact Palm could give this Wi-fi and id be willing to buy it instead of the Foleo & I'm sure it would cost less to make. Furthermore they get to launch a new line of phones that people will actually want for a change. Imagine phones that plug in to any computer monitor. Its a “Slam Dunk”
    Attached Images Attached Images
    Last edited by Bronxboy; 06/05/2007 at 04:47 AM.
  9. #29  
    Quote Originally Posted by surur View Post
    They are not exactly cutting edge, and are often criticized for using old technology, so the answer would seem to be "not enough" and "more".

    Surur
    Actually, the answer seems to be "don't know" and "don't know."

    It's a mistake to think that the "impressiveness" of their products is purely a function of how much money they invested in R&D.
  10. #30  
    So it was a rhetorical question?

    Surur
  11. #31  
    Quote Originally Posted by surur View Post
    So it was a rhetorical question?

    Surur
    No. It was a test to see if the conclusions were based on knowledge.
  12. #32  
    Well, its an opinion thats shared by many people who comment on Palm. I'm going to put up a rather critical article from the Street that says more or less the same thing.

    Surur
  13. #33  
    Perhaps you're thinking of this article from TheStreet.com?

    A recent Booz Allen Hamilton study found little real correlation between R&D investment and business performance. The only direct link was between R&D and gross margins relative to the industry.
    While financial measures don't tell the story, the Booz Allen study suggests that process and culture can define R&D success. "It's the process, not the pocketbook".
    Sounds about right.
  14. #34  
    Quote Originally Posted by samkim View Post
    Perhaps you're thinking of this article from TheStreet.com?

    Sounds about right.
    I knew you would say something like that, and a company like Microsoft seems to be throwing a lot of R&D money down the drain by never implementing things in products, or developing things they never intend to commercialize.

    Having said all of that, Palm's products are standing still while the industry moves forward. Their market share is also shrinking. I believe there exists a connection.

    Surur
  15. #35  
    Quote Originally Posted by surur View Post
    I knew you would say something like that, and a company like Microsoft seems to be throwing a lot of R&D money down the drain by never implementing things in products, or developing things they never intend to commercialize.

    Having said all of that, Palm's products are standing still while the industry moves forward. Their market share is also shrinking. I believe there exists a connection.

    Surur
    You're missing the point. Palm's apparent lack of innovation in its product line is a function of various management decisions, not just how much they spend on R&D.

    Here are the problematic claims:
    Quote Originally Posted by tftp
    Of course, one must ask what Palm has been doing with all that cash -- why weren't they investing it in R&D?
    Quote Originally Posted by surur
    They are not exactly cutting edge, and are often criticized for using old technology, so the answer would seem to be "not enough" and "more".

    Surur
  16. #36  
    Quote Originally Posted by samkim View Post
    You're missing the point. Palm's apparent lack of innovation in its product line is a function of various management decisions, not just how much they spend on R&D.

    Here are the problematic claims:
    Just because it is a conscious decision does not make it the right decision, as again proven by their lack of competitiveness.

    Surur
  17. #37  
    Quote Originally Posted by surur View Post
    Just because it is a conscious decision does not make it the right decision...
    I agree.
Page 2 of 2 FirstFirst 12

Posting Permissions