Feeds

Palm stock nosedives

Share price halved in high-volume trading

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

Palm's financial problems, outlined at week's quarterly results announcement, sent panic among investors yesterday. The company's shares lost nearly half their previous value, after trading at ten times the stock's average volume.

Shares closed at 8.0625, but the stock fell to 7.4375 during the day's trading - an all time low.

All this vigorous trading followed Palm's Q3 results, which not only saw the company return to the red, but included a warning that Q4 isn't going to be much better. Growth will be negligible - 'negative' might be a better word, once you've looked at the figures; revenue won't match Q4 2000's $350 million, but reach $315 million - but marketing will go into overdrive to promote the new m50x family of PDAs, launched this month but not shipping until May at the earliest.

Palm's inventory rocketed from $34 million in the second quarter to $102 million, which may explain why the company is holding off shipping the new PDAs - it wants to clear out all those unsold older models.

They're not selling as well because of the sudden success of Compaq's iPaq. Ironically, that's holding back the release of the very designed to compete directly with the iPaq, the m505.

Palm's warning had a knock-on effect on other PDA makers. PalmOS licensee Handspring fell 32 per cent to 10.875. Psion, trading in London, closed ten per cent off at 117.5 pence. ®

Related Story

Palm to axe 650 jobs as it dips into the red

Top three mobile application threats

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.