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  1.    #1  
    If you're not interested in stock price, don't read this. Apparently, Palm has substantial debt and preferred equity which makes their $590M, or whatever, cash spoken for already.

    March 19, 2010, 9:30 a.m. EDT
    Canaccord Adams cuts Palm price taget to $0
    NEW YORK (MarketWatch) -- Canaccord Adams technology analyst Peter Misek on Friday cut his price target on Palm (NASDAQ:PALM) shares from $4 to $0. "We believe Palm's troubles will only accelerate as carriers and suppliers increasingly question the company's solvency and withdraw their support," Misek said in a note to clients. "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 reiterated his sell rating on the stock.
  2. #2  
    Quote Originally Posted by UntidyGuy View Post
    If you're not interested in stock price, don't read this. Apparently, Palm has substantial debt and preferred equity which makes their $590M, or whatever, cash spoken for already.

    March 19, 2010, 9:30 a.m. EDT
    Canaccord Adams cuts Palm price taget to $0
    NEW YORK (MarketWatch) -- Canaccord Adams technology analyst Peter Misek on Friday cut his price target on Palm (NASDAQ:PALM) shares from $4 to $0. "We believe Palm's troubles will only accelerate as carriers and suppliers increasingly question the company's solvency and withdraw their support," Misek said in a note to clients. "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 reiterated his sell rating on the stock.
    That's grim...
  3. #3  
    Sounds about right.
  4. #4  
    Ah, relax...this is all a headfake for next week at CTIA, where they'll....

    ....no, but seriously. I didn't expect anything less given yesterday's numbers. When you can't offer an answer other than "We're working on training carrier salespeople" to the question of "How do you fix these sales and move all of this stagnant inventory?"...that's what it gets you.

    They may be "aggressively" working on future products, but there's no way they could launch them properly with the current cashflow and inventory issues, if at all.
  5.    #5  
    The big concern is whether or not the carriers will withdraw their support or not. They are selling two year contracts on these phones from a manufacturer that has less than a one year life expectancy. That sound like a lot of customer service baggage that they might be left with. This could really start to become a big pile-on.

    Speaking of piling on:

    Palm Placed on Death Watch | Technology | Financial Articles & Investing News | TheStreet.com

    With all that unsold inventory, one wonders why Palm even started up those factories again after Chinese New Year. I'm thinking they did so because they said they would after the BGR report.
  6. #6  
    Wow! What a roller coaster ride - got on Feb 2009 - got off Mar 2010 and threw-up every share I own (except 2 shares for sentimental reasons - I really do love WebOs - and Palm was my first [smartphone] - - sigh). I will probably buy agian if it dips below $2 (someone will buy the Patents and WebOS at least $3, no?)

    Only thing that can save this sinking ship is if they announce "amazing" new hardware at CTIA and release it within 3-4 weeks when the buz is still high. Chances of that happening . . .
  7. #7  
    Palm Proves That It Missed the Train | Business & Markets | Minyanville.com

    A great article here that cuts through the Rubinstein spin to take a much clearer look at what's not working. Choice segments:

    To hear management tell it, their product training and message are the sources of their woes. The company “discovered” that the sales staff at Verizon Wireless (VZ) was inadequately trained. Really? How were the Sprint (S) personnel trained nine months ago? After acknowledging weak sell-through at Sprint last quarter along with “aggressive efforts” to combat the issue, it arises again at Verizon Wireless 90 days later. What’s wrong with this picture?

    We were told that the 12% ASP decline last quarter was due to the late launch of the Pixi at Sprint on November 15, only two weeks before the end of the quarter. Now another 2% decline in ASP is the result of the launch at Verizon Wireless, seven weeks before the close of the quarter. Something’s not adding up there.

    Updating webOS in real-time was highlighted as a competitive advantage for Palm with subscribers. The company indicated it’s been updated 10 times in the last nine months. How many of those updates have been to fix bugs and performance issues versus new features and functions? Is that a sign that the product was introduced prematurely?

    Don’t let the cash burn fool you; there was more than a $90 million positive contribution in the quarter from other accrued liabilities. Those liabilities are going to come due. Add to that the $45 million charge to COGs by contract manufacturers for the failure to meet purchase commitments. Palm’s purchase commitments extend over 15 months so there is the possibility that further deterioration in demand will lead to additional charges.
  8. #8  
    If they get to .07 cents, I think I'd toss a few bucks in hopes of a buyout.
    I bought SIRI last year at .07 cents hours before having to declare bankruptcy and worked out for me.

    Quote Originally Posted by UntidyGuy View Post
    If you're not interested in stock price, don't read this. Apparently, Palm has substantial debt and preferred equity which makes their $590M, or whatever, cash spoken for already.

    March 19, 2010, 9:30 a.m. EDT
    Canaccord Adams cuts Palm price taget to $0
    NEW YORK (MarketWatch) -- Canaccord Adams technology analyst Peter Misek on Friday cut his price target on Palm (NASDAQ:PALM) shares from $4 to $0. "We believe Palm's troubles will only accelerate as carriers and suppliers increasingly question the company's solvency and withdraw their support," Misek said in a note to clients. "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 reiterated his sell rating on the stock.
  9. #10  
    If it hit $0, I am going to buy a million shares.
  10. #11  
    I'm glad I didn't buy any stock back when I considered it @ the 9-10 range but the irony is I'll be using webOS for easily the next 2 years. Palm may turn into a case study on how a company can go into a tailspin even though they built a better mousetrap.

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