CNBC: Palm's Major Credibility Problem
CNBC tech reporter Jim Goldman published a scathing piece on Palm Inc. late Friday. The article conveys the frustration among some investors and analysts have with Palm's management over ill timed misleading statements and the recent financial warnings. Goldman points to a perceived increasing lack of credibility which has been accentuated by recent disclosures.
Palm's got a credibility problem, and it's the kind of thing that seems so insidious, and so systemic, that it might pose a deep threat to the company's ability to keep going. [...]
If the company knew three weeks ago that Verizon and Sprint were stopping orders, why not just announce it then? Why dribble the news out, and attribute a manufacturing stoppage to the Chinese New Year, which would ultimately not pass the smell test since the work holiday typically only lasts a week and Palm's manufacturing has been suspended for the entire month?
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