palmOne's cautious outlook - digest of the day

[Colin Dunstan]

Even though palmOne gave a cautious outlook for its fourth-quarter earnings expectations, the stock rebounded and some investors (Bear Stearns) even upgraded the company. What's your opinion? Does palmOne still stand a change in today's increasingly competitive mobile device market?

A digest of news and responses to palmOne's Q3 FY05 results:

• palmOne Reports Q3 FY05 Results [palminfocenter.com]
• palmOne Manages a Bounce [thestreet.com]
• palmOne Conference Call Highlights [palminfocenter.com]
• palmOne upgraded by Bear Stearns (Briefing.com) [finance.yahoo.com]
• [video] PalmOne CEO: Smart phones key to the quarter [5.8 min] [us.rd.yahoo.com]
• palmOne's Hand Slapped (Motley Fool) [biz.yahoo.com]
• PalmOne Stock Retreats on Weak Forecast (Associated Press) [biz.yahoo.com]
• PalmOne stock down on weak Treo smartphone outlook (at Reuters) [us.rd.yahoo.com]

[Alexander Turcic]

At least one person disagrees with Wallstreet's forecasts: More proof that Wall Street is BULL$HIT: Forbes has an article today entitled, "PalmOne Stock Retreats on Weak Forecast". I'm not going to link to it because it ain't worth your time. Suffice to say that after PalmOne's recent earnings call, their stock price went down. Why, is the company in trouble? If they are, we should all be in such trouble. PalmOne reported their fourth profitable quarter in a row, with massive and better than predicted (key point for later) sales in their Treo and Tungsten lines. They're just raking in money.

I don't see the picture that rosy. After all, its all about earning expectations when you invest in a stock, and I don't see where palmOne shows much promise in this regard. All I hear is "Treo Treo Treo", but if you have followed the news on CeBIT closely, you'd have noticed that the market for "convergence" device is heating up. palmOne is better coming with something new... fast.

[Jeff Kirvin]

All I hear is "Treo Treo Treo", but if you have followed the news on CeBIT closely, you'd have noticed that the market for "convergence" device is heating up. palmOne is better coming with something new... fast.

Out of curiosity, why? The Treo is still the hottest smartphone on the market, and Sprint, T-Mobile and Cingular are selling them as fast as they can get them from PalmOne. The Verizon 650 should do even better as it should support EV-DO data rates. So why the doom and gloom?

[Colin Dunstan]

Originally Posted by Jeff Kirvin

Out of curiosity, why? The Treo is still the hottest smartphone on the market, and Sprint, T-Mobile and Cingular are selling them as fast as they can get them from PalmOne. The Verizon 650 should do even better as it should support EV-DO data rates. So why the doom and gloom?

Do you really want to place your bet on a single product for a USD 1.08 billion company?

How exactly do you define what is hot and what is not?

You are talking about US carriers selling the Treo... what about Europe? Or about Asia?

[Alexander Turcic]

Originally Posted by Morpheus

Do you really want to place your bet on a single product for a USD 1.08 billion company?

palmOne used to be worth more than twice that much I agree though, judging the future of palmOne merely on the regional success of the Treo which we see right now is perhaps not the best idea.