Selling bonanza at PalmSource

[Alexander Turcic]

Talk about a double standard. While PalmSource leaders tout the benefits of investors owning their stocks, current and former executives seem to be running for the doors themselves. Latest Form 144 filers:

• 07/05/2005 David Nagel, former CEO: 116,388 stocks
• 07/15/2005 Schindler, Gabriele, (now) former VP: 55,220 stocks
• 07/25/2005 David Nagel, former CEO: 130,000 stocks
• 07/28/2005 Slotnick, Lawrence, former CTO: 16,000 stocks

It is not uncommon for executives to liquidate options and sell shares to buy houses or diversify their investment portfolios. But the fact that three of PalmSource's recently laid off executives are selling at the same time, all the while PalmSource stock is osculating around a new all-time low, causes us to speculate there may be more to these stock sales.

Ohh, and really, it's not helping either to boost our confidence that two major insitutional investors, Fred Alger Management and Fidelity, disclosed yesterday that they had dumped all (Alger) or a large part (Fidelity) of their PalmSource shares.

[Antoine of MMM]

Seems more and more like acquisition is coming. Not good for the platform, not good at all. Hopefully, they can get something in that feature phone area working really quick (end of year this year) so that they can at least stay afloat while licensees use that for light-phones and they work on the bigger PalmLinux piece. But this dont look good one bit - unless former leaders are just mad at PalmSource and want to smack them back for letting them go, then thats kinda awful when you think abuot it.

[Bob Russell]

I could be way off base, but I'd guess that this is more of a sign that there are a lot of doubts about the viability of PalmOS for Linux and PalmSource's ability to grab market share in the Linux phone space. If there was an acquisition in the works, wouldn't that be boosting the stock a bit? (Unless it's a clearance fire sale liquidation sort of acquisition, of course.)

But despite the overwhelmingly bad news about PalmOS future, I'm still positive about chances for something good in the future that not only allows them to survive, but to be a significant player in the market. Maybe it's more hope than analysis, but I think they'll make it.

[Laurens]

BobR, that's wishful thinking.

[hacker]

Nokia buys Palm, Cisco buys Nokia =)

[TadW]

Originally Posted by hacker

Nokia buys Palm, Cisco buys Nokia =)

It gives me the creeps, but I can already see tomorrow's headline in WSJ: Palm to release the Cisco-powered Treo 800

[gadgetguru]

Actually, with Palmsource's extensive ties with the Chinese mobile industry (through the China Mobile Soft acquisition), I predict a Chinese company might eventually end up buying Palmsource.

Nokia had bet on Linux and Symbian, so I doubt it will add Palm to the mix. Sony had junked Palmsource and with Sir Howard on the hotseat, I think the strategy is to streamline not add product line so as to decrease cost and turn a profit, so a Palmsource acquisition doesn't make sense. Samsung could use Palm, but I doubt it. Then of course, Palm could buy Palmsource, if Palm still wants Garnet and not Windows Mobile as rumored... But a Chinese acquisition makes more sense, given that many Chinese companies are flushed with cash from years of unimpeded growth...

[doctorow]

Originally Posted by gadgetguru

Actually, with Palmsource's extensive ties with the Chinese mobile industry (through the China Mobile Soft acquisition), I predict a Chinese company might eventually end up buying Palmsource.

I think so too. And with more PalmSource (ex-)employees selling PalmSource stock, the company will become cheap enough to be a bargain.

[Dick Tracy]

Might just be a restricted stock/option vesting cycle followed by portfolio balancing. However the China angle is intruiging because it is difficult to repatriate investments.