By Boyd Erman
Palm Inc. (PALM) may not have long to live as far as shareholders are concerned, with Canaccord analyst Peter Misek (long a bear on Palm) saying there's no value in the company's stock after sales of its main product underwhelmed.
Palm's phones just aren't selling. For every two that carriers bought in the last quarter, only about one was sold to customers. That means that inventory is piling up and Palm's sales are in trouble in coming quarters, analysts say.
In the view of Mr. Misek, the company has only a year of cash left and a burn rate that's picking up. The result is "we believe Palm’s troubles will only accelerate as carriers and suppliers increasingly question the company’s solvency and withdraw their support."
Given that there are other creditors and preferred shareholders who would stand ahead of equity holders in any restructuring, Mr. Misek cut his target to nil from $4 (U.S.)