Palm stock surges after takeover chatter

Alexander Turcic · 02-01-2006, 11:55 AM

Palm saw a remarkable surge in their stock price over the past few weeks (they just hit the $40 mark, a new 52-week high), and it's not only the introduction of the Palm Treo 700w that has been feeding investor fantasies. Attached you find some graphs depicting Palm stock performance as of today, 01/01/06, 06/01/05, and 01/01/01.

The following Briefing.com news went through my mails today:

Palm likely to stay independent over near term
Caris notes that PALM's torrid rise over the past few weeks could be partly attributable to take-out speculation; however, they believe it is likely PALM's mgmt will remain independent, at least over the near term. The firm says the co is broadening its portfolio, diversifying into new customer segments, and ramping its international sales. The firm says that several large-cap computer and wireless cos, like HPQ, MOT, NOK or DELL, could be natural buyers and have ample capital, business synergies and interest in boosting their rev growth rate to merit due diligence on Palm.

Caris & Company analyst Susan Kalla has initiated a "buy" on Palm in September 2005 and she envisions, thanks to the Treo 700w, better than expected revenues and margins for Palm for the next few quarters. Given that Palm is currently trading at a low PE and that smartphones are becoming more popular every day, it's not unlikely that various large cap companies have a general interest in Palm. The question is, what would happen to our beloved Palm handheld if it was indeed acquired by a big name such as Apple (who btw recently filed the "Mobile Me" trademark)?

Related: Sprint Treo 700w expected to arrive earlier

gadgetguru · 02-01-2006, 12:12 PM

I doubt it will ever be Apple, because if they are interested, they would have bought Palmsource when it was still available. 300 million (Palmsource price) dollars is peanuts to Apple because of the war chest accumulated by ipod's success. Mr. Jobs would surely want complete control over the OS and not having to submit to another (Access or Microsoft) for the mobile operating system.

Motorola, also bailed out of Palmsouce bidding, and with it's own products selling well, I don't think they will bid for Palm, if ever.

Microsoft, might be interested, since they are rumored to be developing an ipod-killer, and wanting to move beyond the desktop. So the Treo could be a good platform, especially if the 700w is a big hit. FUD (fear, uncertainty, and doubt) has been part of Microsoft marketing arsenal, so a Treo and it's own email delivery service, it would be a big draw for corporate customer looking for alternate to RIM. RIM legal trouble surely will make some would-be customer hedge or wait.

Laurens · 02-01-2006, 12:50 PM

The headline suggests that Palm is ripe for a takeover, but the boldfaced text says it's likely to stay independent, at least in the near term. Now which is it?

Alexander Turcic · 02-01-2006, 01:39 PM

The chatter has been going on for the past days and the stock surged. In response, Caris sent out this research note saying that they find it unlikely someone will acquire Palm in near term.

medevilenemy · 02-01-2006, 02:47 PM

I doubt palm will be bought by anybody in the near or even long term. My guess is palm's newfound strength is a result of RIM's legal trouble, and finally some internal stability.

As for Apple... hypothetically, if apple bought palm they would have the rights to the palm name, and could easily have palms code people build a new OS from scraps of the old one... but i dont think that will happen.

MrSaint · 02-01-2006, 02:54 PM

Palm Seen As 'Undervalued':

Quote:

Caris & Company Equity Research analyst Susan Kalla maintained a "buy" rating on Palm, citing strong demand for new products and an attractive valuation... Shares of the PDA maker have climbed over the past few weeks due to take-out speculation, but Kalla believes the company's management will remain independent, at least over the near term.

Interesting read!

Bob Russell · 02-01-2006, 03:55 PM

It doesn't seem to make sense for Apple to takeover Palm... they certainly don't want to expand Windows Mobile devices, and they would never stand for a PalmOS future with that in the hands of Access.

On the other hand, if they really wanted to create their own Linux-based mobile OS, now is the time to buy a Palm hardware company... lots of Apple phone rumors, and an acquisition before it gets too entrenched into the Windows Mobile or PalmOS for Linux worlds.

But Apple must feel that it has the hardware know-how for devices, and can partner with third party manufacturors just as well as Palm Inc can. Palm probably can't really help them with the bulk of the issues related to a new Linux-based OS (that's really a PalmSource/Access thing). So I don't see what Palm Inc brings to the table that Apple wants.

Antoine of MMM · 02-01-2006, 04:51 PM

Interesting. I think Moto or Dell would be a better target, but that is just because name means a lot more to compaines that need it over big groups such as Apple. IMO, Apple would not make a play for Palm, but Dell or Moto would in order to be more firmly named with mobile devices and accesiblity to PalmLinux devices. Just a guess though.

But since its been a half hour or so since I started this post...I revise my thinking to say that Palm probably has already been or is in serious talks with someone who want to pull a take over, and its probably Moto. Lost with PSLinux but get their biggest (American anyway) licensee that has products you cannot beat (imaginary or real).

Shanks · 05-13-2006, 07:55 PM

Hi,
Just wondering if you could help me find a free download of the CTU ringtone? If there is such a thing. Or where did you get yours.
Thanks for any help you can offer.
SH

02-01-2006, 11:55 AM	#1
Alexander Turcic Fully Converged Posts: 18,175 Karma: 14021202 Join Date: Oct 2002 Location: Switzerland Device: Too many to count here.	Palm stock surges after takeover chatter Palm saw a remarkable surge in their stock price over the past few weeks (they just hit the $40 mark, a new 52-week high), and it's not only the introduction of the Palm Treo 700w that has been feeding investor fantasies. Attached you find some graphs depicting Palm stock performance as of today, 01/01/06, 06/01/05, and 01/01/01. The following Briefing.com news went through my mails today: Palm likely to stay independent over near term Caris notes that PALM's torrid rise over the past few weeks could be partly attributable to take-out speculation; however, they believe it is likely PALM's mgmt will remain independent, at least over the near term. The firm says the co is broadening its portfolio, diversifying into new customer segments, and ramping its international sales. The firm says that several large-cap computer and wireless cos, like HPQ, MOT, NOK or DELL, could be natural buyers and have ample capital, business synergies and interest in boosting their rev growth rate to merit due diligence on Palm. Caris & Company analyst Susan Kalla has initiated a "buy" on Palm in September 2005 and she envisions, thanks to the Treo 700w, better than expected revenues and margins for Palm for the next few quarters. Given that Palm is currently trading at a low PE and that smartphones are becoming more popular every day, it's not unlikely that various large cap companies have a general interest in Palm. The question is, what would happen to our beloved Palm handheld if it was indeed acquired by a big name such as Apple (who btw recently filed the "Mobile Me" trademark)? Related: Sprint Treo 700w expected to arrive earlier Attached Thumbnails

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02-01-2006, 12:12 PM	#2
gadgetguru Addict Posts: 214 Karma: 6370 Join Date: May 2003 Location: Asia Device: Tungsten T5	I doubt it will ever be Apple, because if they are interested, they would have bought Palmsource when it was still available. 300 million (Palmsource price) dollars is peanuts to Apple because of the war chest accumulated by ipod's success. Mr. Jobs would surely want complete control over the OS and not having to submit to another (Access or Microsoft) for the mobile operating system. Motorola, also bailed out of Palmsouce bidding, and with it's own products selling well, I don't think they will bid for Palm, if ever. Microsoft, might be interested, since they are rumored to be developing an ipod-killer, and wanting to move beyond the desktop. So the Treo could be a good platform, especially if the 700w is a big hit. FUD (fear, uncertainty, and doubt) has been part of Microsoft marketing arsenal, so a Treo and it's own email delivery service, it would be a big draw for corporate customer looking for alternate to RIM. RIM legal trouble surely will make some would-be customer hedge or wait.

02-01-2006, 12:50 PM	#3
Laurens Jah Blessed Posts: 1,295 Karma: 1373 Join Date: Apr 2003 Location: The Netherlands Device: iPod Touch	The headline suggests that Palm is ripe for a takeover, but the boldfaced text says it's likely to stay independent, at least in the near term. Now which is it?

02-01-2006, 01:39 PM	#4
Alexander Turcic Fully Converged Posts: 18,175 Karma: 14021202 Join Date: Oct 2002 Location: Switzerland Device: Too many to count here.	The chatter has been going on for the past days and the stock surged. In response, Caris sent out this research note saying that they find it unlikely someone will acquire Palm in near term.

02-01-2006, 02:47 PM	#5
medevilenemy Junior Member Posts: 4 Karma: 10 Join Date: Jan 2006 Device: Tungsten T5	I doubt palm will be bought by anybody in the near or even long term. My guess is palm's newfound strength is a result of RIM's legal trouble, and finally some internal stability. As for Apple... hypothetically, if apple bought palm they would have the rights to the palm name, and could easily have palms code people build a new OS from scraps of the old one... but i dont think that will happen.

02-01-2006, 03:55 PM	#7
Bob Russell Recovering Gadget Addict Posts: 5,381 Karma: 676161 Join Date: May 2004 Location: Pittsburgh, PA Device: iPad	It doesn't seem to make sense for Apple to takeover Palm... they certainly don't want to expand Windows Mobile devices, and they would never stand for a PalmOS future with that in the hands of Access. On the other hand, if they really wanted to create their own Linux-based mobile OS, now is the time to buy a Palm hardware company... lots of Apple phone rumors, and an acquisition before it gets too entrenched into the Windows Mobile or PalmOS for Linux worlds. But Apple must feel that it has the hardware know-how for devices, and can partner with third party manufacturors just as well as Palm Inc can. Palm probably can't really help them with the bulk of the issues related to a new Linux-based OS (that's really a PalmSource/Access thing). So I don't see what Palm Inc brings to the table that Apple wants.

02-01-2006, 04:51 PM	#8
Antoine of MMM Mobile Ministry Magazine Posts: 119 Karma: 4507 Join Date: May 2005 Location: Charlotte, NC Device: Nokia N75/N800 Internet Tablet	Interesting. I think Moto or Dell would be a better target, but that is just because name means a lot more to compaines that need it over big groups such as Apple. IMO, Apple would not make a play for Palm, but Dell or Moto would in order to be more firmly named with mobile devices and accesiblity to PalmLinux devices. Just a guess though. But since its been a half hour or so since I started this post...I revise my thinking to say that Palm probably has already been or is in serious talks with someone who want to pull a take over, and its probably Moto. Lost with PSLinux but get their biggest (American anyway) licensee that has products you cannot beat (imaginary or real).

05-13-2006, 07:55 PM	#9
Shanks Junior Member Posts: 2 Karma: 10 Join Date: May 2006 Device: Treo 600	Hi, Just wondering if you could help me find a free download of the CTU ringtone? If there is such a thing. Or where did you get yours. Thanks for any help you can offer. SH

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