“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