Feeds

Palm stock nosedives

Share price halved in high-volume trading

  • alert
  • submit to reddit

High performance access to file storage

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

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.