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  1. DrRoger's Avatar
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       #1  
    Hi,
    On March 25th, Alex Dannin, analyst at Morningstar.com, gave Palm a very good report, and Morningstar gives Palm a 5 star rating. Unfortunately you have to have a premium account with Morningstar to read the full report. The summary in the first paragraph is:

    "We are reinstating our fair value estimate for Palm PALM after reviewing the company’s third-quarter earnings. Although revenue came in at the low end of its projections--$312 million--the company sold a record number of smartphones, with demand especially strong for its popular Centro product. We believe this confirms our thesis that Palm still has a strong brand, and that revenue growth will return once the company releases more high-end smartphones. Palm will release new versions of its Windows-based phones this summer, and it's on schedule to complete its new Linux operating system by the end of the year, with new phones coming out shortly after that. These phones will carry higher sales prices, enabling the company to offset the weaker gross margins from its low-priced Centro phones. When this happens, we think gross margins will improve from the 30% in the most recent quarter to almost 34% by next fiscal year. For the same reasons, we expect operating profits to return by the latter half of next fiscal year, after the company posted an operating loss of $37 million in the recent quarter."

    So: the Centro will likely be the lowest priced Palm phone; future phones will likely be twice the price of the Centro. Profit margins are so slim with the Centro, that its purpose seems to keep the Palm name alive.

    I'm strongly considering buying some Palm stock on Monday the 31st March, based on the Morningstar report, and also will likely wait for a Treo 800w this summer as I'm not desperate for a smartphone right now. In 2010 if I get a Linux based phone, it ought to be easy to convert all contact info. by exporting from Outlook as a .csv file. The fact that the 800w will have autonomous GPS is a strong factor in considering a purchase; existing smartphones lacking GPS has been a major deterrent for me. I'm hoping the 800w will have stereo speakers but who knows. Not a major factor.

    Thanks,
    Roger
  2. #2  
    I'm strongly considering paying attention again when/if they ever release anything ever again as innovative as the pilot, v, treo, or 650...

    'Till then, no legalized gambling for me!
    Editor-in-chief, iMore
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  3. #3  
    I would love to buy stock if i had $1000 to spare... but i don't

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