PE Hub (News) - 10:57 ET Mar 19, 2010Palm Inc (PALM)
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Peter Misek
at
Canaccord Adams"While we believe
Palm has some value with its webOS (phone operating software platform)
we are unsure of the company's prospects as an ongoing concern," he said in a client note.
Four analysts tracked by Thomson One data now rank the stock at "sell" or "underperform", and 9 others rate the stock at "hold." Canaccord Adams analyst Peter Misek, who has a "sell" rating, said Palm's troubles will likely accelerate as its partners question the company's solvency and withdraw their support. "With what appears to be roughly 12 months of cash on hand, an accelerating burn rate, a complete lack of earnings visibility, and substantial debt and preferred equity, we no longer see any value in the company's common equity," he said in a note.
Palm has been the subject of chatter that it might be an acquisition target, with Microsoft Corp, Nokia and Dell Inc often mentioned as potential suitors.
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"While we believe <span class="company">Palm</span> has some value with its webOS (phone operating software platform)
we are unsure of the company's prospects as an ongoing concern," he said in a client note.<span class="sent"> Four analysts tracked by Thomson One data now rank the stock at "sell" or "underperform", and 9 others rate the stock at "hold." Canaccord Adams analyst <span class="analyst">Peter Misek</span>, who has a "sell" rating, said <span class="company">Palm</span>'s troubles will likely accelerate as its partners question the company's solvency and withdraw their support.</span> "With what appears to be roughly 12 months of cash on hand, an accelerating burn rate, a complete lack of earnings visibility, and substantial debt and preferred equity, we no longer see any value in the company's common equity," he said in a note. <span class="company">Palm</span> has been the subject of chatter that it might be an acquisition target, with Microsoft Corp, Nokia and Dell Inc often mentioned as potential suitors.
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