Beleaguered Palm hit with double-digit selloff amid report of Radio Shack dumping Palm devices

invisibleSHIELD case for iPad“Palm slipped by more than -10% on Monday as investors considered the company’s prospects without a buyer,” tickerspy.com reports via Yahoo FInance. “A month ago, CEO Jon Rubinstein said, ‘the potential for Palm remains strong,’ in a fiscal third-quarter earnings report that sent shares plummeting, and led Canaccord Adams to nail the stock with a $0 price target.”

MacDailyNews Take: He also said he wanted to retire from Apple in order to build a house on a Mexican beach and drink Margaritas.

“After a couple of weeks, however, investors started to hop back on board in hopes that another firm would scoop up the distressed smartphone maker. Hewlett-Packard, Dell, and Cisco were among firms listed as would-be buyers, but with little more than speculation to build on, long-side traders are getting hurt in today’s session,” tickerspy.com reports.

“According to the Barron’s Tech Trader Daily blog, C.L. King analyst Lawrence Harris wrote that Radio Shack may be phasing out Palm devices,” tickerspy.com reports. “The report also notes negative sentiment from UBS analyst Manyard Um who reiterated a Sell rating and a $4 price target and Morgan Keegain’s Tavis McCord, who downgraded Palm to Underperform today.”

Full article here.

19 Comments

  1. I know MDN loves to kill Rubinstein, but in all fairness, there wasn’t much anyone could have done with Palm. The Pre was pretty far along in design, especially Web OS (which, by all accounts, is the best competitor to the iPhone OS). Palm was just too far gone for any one product to save it absent a grand slam, and there wasn’t anyone on base when Palm came to the plate. Apple had already cleared the bases with the iPhone.

    Had Palm introduced the Pre before the iPhone, it would have saved the company. Being second to the party doomed it to “Me Too” status, and the hardware problems didn’t help either.

  2. bizlaw:

    The baseball references flew way above mine, as well as most of the rest of the non-American readers’ heads (with the exception of some Caribbean and Japanese readers).

    I shall assume what you meant by ‘absent of grand slam’ was ‘absent of a major hit product’; then ‘there wasn’t anyone on base when Palm came to the plate’, ‘there weren’t many people ready to buy when Palm came to market’, and ‘Apple had cleared the bases with the iPhone’ meant something along the lines of ‘Apple saturated the mindshare with the iPhone’.

    If someone could come up with a non-sports (or at least non-baseball) metaphors, it would be appreciated by us non-Americans.

    And to add on the subject, whoever took a ride from $1 (December 2008) all the way to $15 (last summer) got lucky. The rest (who still hold PALM in hope of something) may have only one chance left, if someone still wants to actually buy the outfit. If Palm does not find their buyer, there is a strong possibility that it will continue to hemorrhage cash and eventually go under. PALM owners would end up holding a candle…

  3. Will someone just buy the stupid company already?? They have patents and intellectual property… I’d almost thing maybe HTC would buy them out. HTC makes nice hardware but has horrid software on them… HTC with WebOS could be real good.

  4. @ Predrag

    You lament the use of a USA sports game as an analogy of a story and you end your post with “PALM owners would end up holding a candle…”

    Never heard the analogous phrase “holding a candle”?! Please abide by your own sentiment. Thank you.

  5. Wooo Hoooo Sure hope they go bankrupt and a lot of people lose their jobs!!!!! Couldn’t agree more with you MDN, No company except Apple has any right existing in America!!!

    Sure hope Dell, Motorola, Google, Microsoft, HP, and all the rest of the “Crappy” companies all go BR soon!!!!!

    Woooo Hoooo Steve, we love you!!!!!!!!!!!! God, thanks to MDN I finally feel that I “fit in” somewhere for the 1st time in my life!! And my LIFE is APPLE!!! Wooooo Hooooo

  6. Predrag:
    1. Grand Slam – when you hit the ball out of the playing field, and 1st, 2nd and 3rd bases have runners on them. This means you get 4 points for the home run, the most you can get in 1 at bat. Considering that most baseball games end with scores in single digits on both sides, 4 points is very likely to decide the outcome of the game.

    2. No one on base when Palm came to bat – even if Palm got a home run (hit product) it would not score more than 1 point.

    3. Apple Cleared the Bases – Apple already got a home run and all the runners on the bases had already scored. So Palm could only at most get 1 point for hitting the ball out of the playing field for a “home run”.

    Basically Apple already cleaned up, got all the goodies, won the lotto, and ate the desert. Palm had only leftovers and some crumbs, and a broken toaster oven.

    Hope that helps.

  7. @Uh-huh

    Nobody here is wishing ill will on the average worker. PALM is suffering from Hubris of the worst kind. It’s too bad the good workers of PALM have to suffer because of management’s ineffectiveness..

  8. @ uh-huh you don’t deserve this but it may help you to understand the world a little better. The market is working the way its supposed to work. Crappy, me too products fail and fall to the real innovators because people arent stupid and will generally spend their money on the best product… you know “May The Best Man Win”. chew on that for a while and then try to offer a meaningful comment.

  9. I believe Uh-Huh’s comment was intended as sarcasm, but it was in rather poor taste.

    As for Palm, I’m beginning to feel very sorry for the employees there. I figured some company along the way would have picked them up by now, but I guess all the potential players are playing chicken to see how low Palm’s price will go. Even if they do get bought out now, I can’t imagine anything happening there except mass layoffs. I hope regular employees have been looking for alternative employment by now; it’s beginning to look like Palm is *really* not long for this world.

  10. Misleading headline. I thought “Radio Shack Dumping Palm Devices” meant that they were starting to actually sell them! (not that it could actually happen”.

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