Tech Trader Daily - Mar 09, 2010Nokia Corporation (NOK.1)
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Ilya Grozovsky
at
Morgan Joseph & Co.Despite heavy Street speculation to the contrary, Palm (PALM) is not likely to be taken over, Morgan Joseph analyst Ilya Grozovsky this morning asserted in a research note."We believe rumors of Palm as a potential buyout candidate for larger technology companies such as Microsoft (MSFT) , Dell (DELL) , Nokia (
NOK) and Hewlett Packard (HPQ) among others has little merit," he writes, despite a 45% drop in the company's shares since . With the stock trading at 1x his calendar 2010 sales estimate of $948 million, he thinks the shares still reflect a potential takeover premium. That said, he thinks the company's $590 million cash position gives it enough resources to make several more attempts at developing a new phone; ergo, he maintains a Hold rating on the shares.
Share:
<span class="sent">Despite heavy Street speculation to the contrary, Palm (PALM) is not likely to be taken over, Morgan Joseph analyst <span class="analyst">Ilya Grozovsky</span> this morning asserted in a research note."We</span> believe rumors of Palm as a potential buyout candidate for larger technology companies such as Microsoft (MSFT) , Dell (DELL) , Nokia (<span class="company">NOK</span>) and Hewlett Packard (HPQ) among others has little merit," he writes, despite a 45% drop in the company's shares since . With the stock trading at 1x his calendar 2010 sales estimate of $948 million, he thinks the shares still reflect a potential takeover premium. That said, he thinks the company's $590 million cash position gives it enough resources to make several more attempts at developing a new phone; ergo, he maintains a Hold rating on the shares.
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