The Motley Fool Paints A Pale View of Palm's Stock
The Motley Fool web site has posted a new article by Tim Beyers to its Investing section entitled "Palm Will Burn Your Portfolio". In short, the article pulls no punches when discussing Palm's stumbles over the past several years and simply calls Palm "The worst stock in the world". After delving further into the article to reach beyond the topic of stock performance, Beyers' piece goes onto paint a dismal picture for the handheld pioneer that essentially jump-started the entire modern PDA/smartphone sector in 1996. Also found within the article is a smattering of undated Gartner marketshare numbers to back up the article's tone.
This piece really hits hard at Palm's dismay performance during four consecutive quarterly losses by virtue of being focused on outright financial (non-)performance in contrast to more forgiving, tech-related pieces bolstering Palm's future outlook based on their past successes. None of the Palm OS core strengths such as compelling ease-of-use, 3rd party app flexibility, and the Centro's value relative to competing smartphones from RIM, Apple and Microsoft licensees are touted within the article.
Discussed prominently, however, are the Centro's razor-thin profit margins and the enormous resource drain that was the now-cancelled Foleo subnotebook. Ed Colligan, Palm's long-tenured CEO, is also called into question despite being the enthusiastic leader but not the aggressive innovator Palm needs to rescue them from their dire predicament of a tired line of products lacking "mojo".
The piece concludes with an overall assessment that questions the viability of Palm Inc. as a viable, ongoing corporate entity: "…with well-funded competition, poor financials, and borderline management, Palm is the worst stock in this burn contest and perhaps in the world - the sort that will make your portfolio bleed red."
The aging Palm OS Garnet's lack of pizzazz and market share is the focal point of the article, with no mention made of the overhauled Nova OS currently in the works at Palm. Palm's most recent higher-end efforts, Windows Mobile 6.1 such as the Treo 800w and rumored Treo 850, are also not discussed at any length other than a brief mention of the continued irony of Windows Mobile's presence amongst Palm's traditional Garnet-based offerings.Despite the Fool article's claim of many happy Palm OS users in its online community, few are bullish on the stock & company that was once the darling of both NASDAQ and the mobile computing industry, with a few choice comments from members of Motley Fool's CAPS community tossed in the article for good measure. The article's outlook is so bearish on Palm stock that some of the Palm faithful may want to double-check their Treo cases for claw marks for the foreseeable future.
Article Comments(46 comments)
- I got one -Tuckermaclain
- I got one -Tuckermaclain
- 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