CNBC Gives Palm a Big Thumbs Down
Following a week of vaporizing share prices, stock downgrades and layoffs, Palm starts this week of with another negative financial portrayal. CNBC's tech reporter, Jim Goldman, has published a highly critical editorial entitled Palm Gets A Big Thumbs Down. The article largely draws upon a newly released research note from Pablo Perez-Fernandez, the wireless analyst at Global Crown Capital, who also coincidentally downgraded the stock again today.
Perez-Fernandez chides the Palm's strategy to pay a one-time, $900 million dividend to engineer Elevation's 25 percent stake last year saying "made no sense then, and is even more difficult to swallow today." He also makes the suggestion that Elevation may be looking to divest, though he basically admits this is largely his own speculation. He goes on to postulate that Palm's recent shelf registration would significantly dilute shares and might give Elevation further motivation to get out. That move would be quite extraordinary considering three of Elevation's primary leaders currently occupy seats on Palm's board.
The article doesn't get much better and it goes on to further rip Palm's decision to launch the Treo Pro without carrier support in the US and questions Colligans ability to turn the company around. Goldman suggests "Palm simply had difficulty getting manufacturing costs low enough that a carrier could cost-effectively subsidize it."
Article Comments(38 comments)
- RE: Don't we have this already? -Tuckermaclain
- RE: Palm brand will return in 2018, with devices built by TCL -richf
- RE: Palm brand will return in 2018, with devices built by TCL -dmitrygr
- Palm phone on HDblog -palmato
- Palm PVG100 -hgoldner
- RE: Like Deja Vu -PacManFoo
- Like Deja Vu -T_W
- RE: Don't we have this already? -richf