Beleaguered Palm’s shares plummet on worries about capital

“Shares of Palm Inc tumbled on Wednesday after an analyst downgraded the stock and questioned whether the smartphone maker will need to raise additional capital to pull off its turnaround plan,” Gabriel Madway reports for Reuters.

“The shares were down 21 percent at $3.16 in afternoon trade on Nasdaq,” Madway reports.

“Morgan Keegan analyst Tavis McCourt said in a note that he expects Palm’s cash balance to fall to $75 million next year as it launches its new platform. Its cash balance was $248 million at the end of August. ‘We are increasingly concerned that Palm has little room for additional missteps prior to its new platform launch next year without needing to raise additional capital,’ McCourt said,” Madway reports.

More in the full article here.

MacDailyNews Take: “We’ve learned and struggled for a few years here figuring out how to make a decent phone. PC guys are not going to just figure this out. They’re not going to just walk in.” – Ed Colligan, Palm CEO, November 16, 2006

24 Comments

  1. “We’ve learned and struggled for a few years here figuring out how to make a decent phone. PC guys are not going to just figure this out. They’re not going to just walk in.” – Ed Colligan, Palm CEO, November 16, 2006.

    Ed will probably, ‘just walk out’, with a golden parachute. Do it this year Ed. The taxes will be lower.

  2. The Treo is really a great phone… in several different areas, it’s even better than the iPhone because it really is a mature OS. However, the company making it just can’t seem to get their act together and I wonder how much longer they’ll even be around?? It’s a shame, because Apple could pull a lot of great ideas from the Treo before Palm goes completely under. I think that we’re going to see the end of Palm soon.

  3. This is where Palm Inc problem is. Their pleased with their “decent phone”. People want a great phone. So they get an iPhone!

    Microsoft has the same problem, they think a “decent” operating system is all they need to achieve and people want the best. So they get a Mac!

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.