Comments on: Palm Announces 2-for-1 Stock Split

New Palm Inc Logo ~ Click for largerPalm today announced that its board of directors has approved a 2-for-1 split of its common stock, which will be effected in the form of a stock dividend. Today, Palm has approximately 51 million shares outstanding. The split, which will bring the number of shares outstanding to more than 100 million, will help the company align its capital structure to that of companies with comparable revenue.
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Great; 1 down 2 to go

hgoldner @ 2/13/2006 4:34:36 PM # Q
Super. Now for every 8 shares I originally bought, I have 2, instead of only 1.

Getting there.....

Harold

Reply to this comment

This is only the beginning, folks...

The_Voice_of_Reason @ 2/13/2006 5:05:08 PM # Q
Hold on tight - it's gonna be a WILD ride.

;-O

Hengeem: Wanna know a little secret? Heh heh heh...

------------------------
Sony CLIE UX100: 128 MB real RAM, OLED screen. All the PDA anyone really ever wanted.
------------------------

The Palm eCONomy = Communismô

The Great Palm Swindle: http://www.palminfocenter.com/comment_view.asp?ID=7864#108038

NetFrontLinux - the next major cellphone OS?: http://www.palminfocenter.com/comment_view.asp?ID=8060#111823

RE: This is only the beginning, folks...
twizza @ 2/13/2006 5:52:24 PM # Q
Interesting, I came here looking for a TVOR comment and found the one I was expecting.

I look with some chagrin (sp?) at this move. Sounds more like a prep to buy to me than anything. That along with teh hurried move to a Sprint 700w but not 700p makes me wonder a few things.

A wild ride indeed.

mobileministrymagazine.com
antoinerjwright.com

RE: This is only the beginning, folks...
KultiVator @ 2/13/2006 5:53:00 PM # Q
TVoR - your commentary on the PalmOne/PalmSource split proves that things didn't exactly work out the way you predicted - nonetheless, any fiddling with stocks by Palm at this point in time is going to raise eyebrows.

Anyone from a financial background care to comment on this move? Should we be worried, or is this just some astute house-keeping?

KultiVator

RE: This is only the beginning, folks...
The_Voice_of_Reason @ 2/13/2006 5:57:24 PM # Q
Beware the Ides of March, Antoine.

Some very bad people have made a LOT of money from one of the most manipulated stocks I've EVER seen. Those who bought + sold Palm/PalmSource stock without the benefit of insider info are FOOLS. Those who bought Palm/PalmSource stock with the benefit of insider info are LAUGHING*.

Bwahahahaha!

*CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This post by TVoR, Inc. contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements in this post are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.


------------------------
Sony CLIE UX100: 128 MB real RAM, OLED screen. All the PDA anyone really ever wanted.
------------------------

The Palm eCONomy = Communismô

The Great Palm Swindle: http://www.palminfocenter.com/comment_view.asp?ID=7864#108038

NetFrontLinux - the next major cellphone OS?: http://www.palminfocenter.com/comment_view.asp?ID=8060#111823

RE: This is only the beginning, folks...
SeldomVisitor @ 2/13/2006 6:05:36 PM # Q
Splits theoretically reduce volatility by increasing the number of shares out there.

It could be taken as a positive as well since it theoretically makes it "harder" to move the stock price around violently.

I (of course!) think it will be a failing attempt to stabilize the price BECAUSE PALM ==is== such a trader's stock and the lower price will allow OODLES of traders to start trading the hell out of it even more.

The timing of the split, however, seems suspect (at best).

======

Note - to me this is all VERY positive because of the above - I LIKE volatile stocks for trading and sincerely believe this actually will make PALM MORE volatile rather than less.

We'll see!

Whatta game!

RE: This is only the beginning, folks...
The_Voice_of_Reason @ 2/13/2006 6:07:08 PM # Q
TVoR - your commentary on the PalmOne/PalmSource split proves that things didn't exactly work out the way you predicted - nonetheless, any fiddling with stocks by Palm at this point in time is going to raise eyebrows.

Actually, things would have worked out EXACTLY as I had predicted were it not for two little glitches that Judas Benhamou (understandably) never expected:

1) Motorala was desperate for an OS after the tragic failure of its own Linux-based initiative.

2) Access was evidently run by crackheads who don't know the meaning of "due diligence".

Remove those 2 variables and by now Palm would have announced that it was re-acquiring PalmSource for a stock + cash deal. With the Windows Mobile Treos to bring in some quick cash and total control of PalmOS, Palm would finally have come full circle and would actually be looking good in 2006. Instead, we're about to witness the inevitable end to an epic tragedy of Shakespearean proportions.


TVoR

------------------------
Sony CLIE UX100: 128 MB real RAM, OLED screen. All the PDA anyone really ever wanted.
------------------------

The Palm eCONomy = Communismô

The Great Palm Swindle: http://www.palminfocenter.com/comment_view.asp?ID=7864#108038

NetFrontLinux - the next major cellphone OS?: http://www.palminfocenter.com/comment_view.asp?ID=8060#111823

RE: This is only the beginning, folks...
SeldomVisitor @ 2/13/2006 6:17:51 PM # Q
> ...the hurried move to a Sprint 700w but not 700p makes me wonder
> a few things...

I simply wonder why people think the CEO of PALM is going to mislead investors by saying 6 months then change his mind.

Oh! I know! You were fooled by the Inphonic ad, right?

-- http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=1600640725&tid=palm&sid=1600640725&mid=226340

Giggle.

RE: This is only the beginning, folks...
LiveFaith @ 2/13/2006 6:34:27 PM # Q
Split @ $35? Wow.

Putting them in the $17-$18 range may be nice for now, but get a market hit or lose 50% because of x, y, or z and she's below the $10 threshhold. Institutions don't like anything less than $10 usually. It's often an ugly sign when one gets below it. With the buyout / takeover rumors rumbling around the street, it seems reeeeeally strange.

** Funny, when I first saw the headline with Palm + Stock Split in the heading, my mind immediately thot "reverse split". She's probably positioning to be bought, but if not, the "reverse" may be in the near future.

Pat Horne; www.churchoflivingfaith.com

RE: This is only the beginning, folks...
twizza @ 2/13/2006 6:44:38 PM # Q
LF's thinking is where mine is. I think that this move was more of a catch folks who are sleeping why they can be before something else catches the fan and splats every where.

I usually am not one to take too much into TVOR's postings, but I do pay attention. And to this happening now, I am paying attention. A month+ of stock splitting activity during the down-season for tech anything has nothing but "primed for buy" written all over it.

And even if newer models would have made for a return to something less buyable, I don't think that this was the fallback that Palm wanted. I am with many who think that Palm wanted PS back, and in losing it went into Plan B mode (whatever that is).

According to when I first got live wind of the 700w. It was in hands in Nov. 6 months would be March/April and well within Palm's reasoning for releasing with Sprint. Whether that is truely the case or not is something that closed doors do not reveal to many who post here (especially myself).

[shaking head] It really didn't have to be this way. Some decisions should have been better thought out. Even now, some decisions are in play that shouldnt have been. Tis a weird piece of news for sure, but I think its only a thread to a larger robe to come.

mobileministrymagazine.com
antoinerjwright.com

RE: This is only the beginning, folks...
Simony @ 2/13/2006 7:11:56 PM # Q
The ignorance I see displayed on this board on financial issues is appalling.

Please note:

1. In terms of corporate activity (that's a Street euphemism for takeovers and the like), stock splits are normally irrelevant.

2. Sometimes, stock-splits are justified (by second rate brokers) on the basis that they promote liquidity for smaller stockholders by reducing the per share market price. The reality is that it makes no difference at all.

3. Sometimes, a corporate splits its stock in an attempt to give uneducated stockholders a false impression, that is, that they are getting something from the company. Of course, that is utterly bogus - but some ignorant people (like Computer Science graduates) might believe it.

RE: This is only the beginning, folks...
The_Voice_of_Reason @ 2/13/2006 7:29:48 PM # Q
I usually am not one to take too much into TVOR's postings, but I do pay attention. And to this happening now, I am paying attention. A month+ of stock splitting activity during the down-season for tech anything has nothing but "primed for buy" written all over it.

Pay no attention to me. I'm as mad as a hatter, as crazy as a Benhamou.

And even if newer models would have made for a return to something less buyable, I don't think that this was the fallback that Palm wanted. I am with many who think that Palm wanted PS back, and in losing it went into Plan B mode (whatever that is).

Plan B = Plan 9 From Outer Space. The Reunification of Palm would have been a brilliant, triumphant endgame, creating a silk purse out of a sow's ear. Instead, Palm was left with bupkis. They were smart enough to have planned ahead with the Windows Mobile Treos, but as a company, their primary products are starting to look a little moldy. 2006 will see PDAs and smartphone designs that, quite frankly, make Palm's hardware look like overpriced junk.

So riddle me this, Kiddies: If you were the CEO of a besiged company currently surrounded by 5 armies, each capable of demolishing your city without even trying, what would you do? WWCD (What Would Colligan Do?) WWBD (What Would Benhamou Do?) Visualize and ye shall know the future.

[shaking head] It really didn't have to be this way. Some decisions should have been better thought out. Even now, some decisions are in play that shouldnt have been. Tis a weird piece of news for sure, but I think its only a thread to a larger robe to come.

Careful now, 'Toine. Now you're starting to sound like me. ;-O


TVoR



------------------------
Sony CLIE UX100: 128 MB real RAM, OLED screen. All the PDA anyone really ever wanted.
------------------------

The Palm eCONomy = Communismô

The Great Palm Swindle: http://www.palminfocenter.com/comment_view.asp?ID=7864#108038

NetFrontLinux - the next major cellphone OS?: http://www.palminfocenter.com/comment_view.asp?ID=8060#111823

RE: This is only the beginning, folks...
The_Voice_of_Reason @ 2/13/2006 7:47:14 PM # Q
but I think its only a thread to a larger robe to come.

Would that be a "Golden Thread"? for some special pinstripes?

;-O

------------------------
Sony CLIE UX100: 128 MB real RAM, OLED screen. All the PDA anyone really ever wanted.
------------------------

The Palm eCONomy = Communismô

The Great Palm Swindle: http://www.palminfocenter.com/comment_view.asp?ID=7864#108038

NetFrontLinux - the next major cellphone OS?: http://www.palminfocenter.com/comment_view.asp?ID=8060#111823

RE: This is only the beginning, folks...
twizza @ 2/13/2006 10:53:56 PM # Q
Not at all meaning to sound like ya TVOR, just paying a bit to much attention to small details.

I agree with Simmony that stock splits are not anything major. But, stock splits when riding a high in a normally slow period for your company (and others in the same arena) without any clear distinction towards future offerings with your (then) namesake operating system while clearing the inital hurdles with your (used to be) rival's OS seems to me more of a shell game than a stragetic marketing stragety to cause more funds to be gained for R&D.

And if that makes me sound like a golden robe, tis a shame. I like my 650, but it shouldnt have to be reading this any more than I.

OT: if anyone can manage to port PalmSource WebBrowser 3 to the Treo 650, I'd gladly pay $30 for my copy. That was one great browser and unfortunately never got to see the light of user-day.

mobileministrymagazine.com
antoinerjwright.com

RE: This is only the beginning, folks...
Simony @ 2/14/2006 2:11:53 AM # Q
> I agree with Simmony that stock splits are not anything major. But, stock splits when riding a high in a normally slow period for your company (and others in the same arena) without any clear distinction towards future offerings with your (then) namesake operating system while clearing the inital hurdles with your (used to be) rival's OS seems to me more of a shell game than a stragetic marketing stragety to cause more funds to be gained for R&D.

I'm not sure that I understand your reasoning.

To the extent that stock splits have any justification (and usually they are close to meaningless), they are typically seen after a company's share price has increased dramatically over a short period of time. In a sense, a stock-split is a symptom of outstanding/abnormal stock market performance.

On the other hand, stock-splits have no bearing on product development, marketing or distribution.

Nor do they affect the financial standing of the company in any way. They don't even affect employee share plans, because plan rules always have mechanisms to adjust for the effect of any stock-split.

When assessing a company, all (reputable) financial analysts adjust their numbers to exclude the effect of any stock-splits. A stock-split is not a 'shell game', since the published numbers can be adjusted easily to allow a proper comparison to be made over a number of years - just in the same way that adjustments are made to deal with anything which has a dilutive effect (eg, warrants, convertibles, etc).

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More Smoke and Mirrors

Gekko @ 2/13/2006 7:41:48 PM # Q

Two Fifty Cent Pieces = $1, Dummies.



RE: More Smoke and Mirrors
JarJar @ 2/13/2006 8:06:22 PM # Q
In the literal sense, yes.

However, in practice there is always a meaning behind the exchange beyond the neutral equation. If a guy splits a $1 into two fifty cent pieces, is he planning to ride the bus? Play slot machines? Put them under his daughter's pillow as tooth fairy money? There is always a reason.

In the case of a corporate split, there is a cost of overhead both in money and in corporate brain power that gets expended to make it happen. So, they wouldn't do it unless somebody thinks they can get something out of it...

As always, the guys at Palm are more interested in playing stock games than they are in working on the device itself. Same thing for the past five years.

RE: More Smoke and Mirrors
Simony @ 2/13/2006 8:37:50 PM # Q
> In the case of a corporate split, there is a cost of overhead both in money and in corporate brain power that gets expended to make it happen. So, they wouldn't do it unless somebody thinks they can get something out of it...

The costs of doing a stock-split are usually minimal. Assuming the company's constituent documents permit a stock split (and they usually do), all it takes is a single Board resolution, some entries in the stock register and printing/mailing out new stock certificates. (Complications can arise if the company incoporated under some State corporate laws - but not for Delaware corporations - most listed companies are incorporated in Delaware, by the way.) Sensible companies would seek tax advice on this kind of transaction (to check that this is not likely to cause a tax problem for stockholders). However, in overall terms, a stock split is a relatively cheap and easy thing to do.

I wouldn't lose any sleep over this sort of thing distracting Palm from other efforts.

RE: More Smoke and Mirrors
SeldomVisitor @ 2/14/2006 6:16:48 AM # Q
Admittedly PALM-pessimistic, I think the timing of the split is sufficiently "unusual" that earnings should prove to be interesting.

Splitting the stock just pre-earnings could suggest, for example (and from the pessimistic POV), that the company is going to miss. The split allows the miss to overtly be perceived to be "less" (half!).

Just as someone somewhere said about "owning twice as many shares feels good" so, too, does missing "half-as-badly"...

Whatta game!


RE: More Smoke and Mirrors
JarJar @ 2/14/2006 12:44:54 PM # Q
"The costs of doing a stock-split are usually minimal."

In general I would agree with you, but from what I've seen of the Palmies, they find ways to expend more energy than normally required. Also take into account not just the direct costs of the split itself, but also the peripheral shananigans that go on at Palm.

RE: More Smoke and Mirrors
Simony @ 2/14/2006 4:43:58 PM # Q
Newsflash: Palm issues a press release which says that the sun will rise tomorrow.

PIC reaction: endless stream of bull$hit comments about how Palm's bungling will mean that the sun will never rise again, that Palm is responsible for the end of life as we know it, etc, etc.

RE: More Smoke and Mirrors
KultiVator @ 2/14/2006 5:57:52 PM # Q
Simony wrote...

Newsflash: Palm issues a press release which says that the sun will rise tomorrow.

PIC reaction: endless stream of bull$hit comments about how Palm's bungling will mean that the sun will never rise again, that Palm is responsible for the end of life as we know it, etc, etc.

Simony - I'd like to buy you a beer for making the truth so entertaining.

Responses here on PIC are often so sensationalistic that I often wonder if I live in some alternate reality that's really boring and static compared to the rollercoaster of conspiracy that rocks the world where TVoR/Gekko/Surur and minions live.

I wonder if the newsgroups surrounding development of new kinds of breakfast cereal are this dramatic?

To think we take part in a real-life soap-opera here on PIC every day!


KultiVator

RE: More Smoke and Mirrors
Gekko @ 2/14/2006 6:20:52 PM # Q

Sheep get slaughtered.



RE: More Smoke and Mirrors
cervezas @ 2/14/2006 6:30:28 PM # Q
Sheep get slaughtered.

Yeah, hey, I was real sorry to hear about the loss of your wife, Gekko. Poor thing.

Baaaaaaah!

RE: More Smoke and Mirrors
Gekko @ 2/14/2006 6:47:45 PM # Q

Beersie - Given the size of your wife, I'm really surprised you went there. Are you taking her to the all you can eat buffet again this year for V-Day? And does she still find your "man-boobs" sexy?

Please get out of your basement and away from the computer and get a real job. I think you've posted enough for today.



RE: More Smoke and Mirrors
Simony @ 2/14/2006 7:00:35 PM # Q
Apologies for my sarcasm. The bull$hit here at PIC piles up so fast that you need wings to stay above it (to paraphrase from my favourite movie). I sometimes lose patience with all this and retaliate with uncalled for comments. I will try to control myself in the future.

RE: More Smoke and Mirrors
cervezas @ 2/14/2006 7:23:55 PM # Q
Hey, that's my wife you're talking about there, buddy! We're allowed to make fun of your wife, because, well... truthfully I doubt you've been able to attract and hold on to one.

Anyway... I'm afraid it's a virtual V-day for us tonight. I'm in Chicago with a client and she's holding down the fort back in Colorado.

It's been an interesting day.

David Beers
Pikesoft Mobile Computing
Software Everywhere blog
www.pikesoft.com/blog

RE: More Smoke and Mirrors
Gekko @ 2/14/2006 8:11:00 PM # Q
>I'm in Chicago with a client

oh realy? you sure have a lot of time to post.



RE: More Smoke and Mirrors
souterj @ 2/15/2006 12:44:08 AM # Q
Simony wrote...

Apologies for my sarcasm.

Hey - there was nothing uncalled for in your comments - it was the element of truth that made it funny!


KultiVator

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