If Palm PRE ⢠Sales plummet, these freaky, scary ass commercials will be to blame: <object width="560" height="340"><param name="movie" value="http://www.youtube.com/v/DG0P8_O8u64&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/DG0P8_O8u64&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="560" height="340"></embed></object> <object width="560" height="340"><param name="movie" value="http://www.youtube.com/v/F9aPp2ldO_k&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/F9aPp2ldO_k&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="560" height="340"></embed></object> <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/tSMj5RoYdEI&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/tSMj5RoYdEI&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object> And here is an increadibly funny remix <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/pr4oNfF4_Fo&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/pr4oNfF4_Fo&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>
Is it not unreal that someone somewhere along the way didn't have the balls to stand up and say 'These commercials are stupid'. I mean, I know for a fact that the ad agency has to run these by the officers of the company before they buy airtime. So no one at Palm was able to figure out that these commercials suck? They'll be pulled before too many people get a chance to see them.
Palm may just get bought out if the pre fails. Don't know if that affects your thesis. Those commercials sure don't help though.
One year later, Palm will be history. palm is burning cash and it is doing that big time ($7 in the last year !!). Pre does not have appeal to Teens and is not considered a cool phone by the same fans who consider Iphone cool. It has the lowes apps in smart phones. It is not like BlackBerry who can sneak into corporate emailing. It is also sold by Sprint who is also losing money. Pre had lackluster sales and Palm hopes that the sales will pick up so they don't announce the real numbers. They are losing money and they will also lose money next Q. Palm hacked into iTune by using Apple's USB ID which also increases the possibility of getting sued by Apple. Big insider sales also prove that they also know the current price won't last. I believe a quick big drop is imminent.
Now that the price of PALM has run its way up again, I have been figuring out the proper entry for a short. However, after checking around at stores in my area, I was surprised to learn that the product is actualy starting to move. I'll wait until the next earnings call and make up my mind then. Maybe management will actually disclose how many they've sold for a change.
The stores that I checked in my area {NH and MA} and my talk with sales associates in Best Buy shows the opposite. Do you believe the sales that you noticed, justifies the current stock price?
No, I didn't say that either. The current share price assumes that Pre will continue to ramp into the Sprint user base and rolls out into VZ and ATT or T-Mobile. Sells enough units to take measurable share from iPhone and Blackberry. Starts having profitable quarters in FY10 and solidly profitable in FY11. So, I will wait a bit longer to see how it plays out.
This is all I have to say about Palm and the Pre: <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/pr4oNfF4_Fo&hl=en&fs=1&color1=0x3a3a3a&color2=0x999999"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/pr4oNfF4_Fo&hl=en&fs=1&color1=0x3a3a3a&color2=0x999999" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object> However, this maybe kinda old, but it seems that Palm is cleaning house: http://www.palminfocenter.com/news/9854/palm-reorganizes-marketing-execs/
Sign of cracking today. I believe this can go to down to $13 in a couple of days. It is too much pumped.