Ouch and Yea!… That’s the way the last week was for Palm. Ouch was the pummeling the PALM stock took as guidance was lowered and analysts speculated on what the true meaning was behind the numbers. Things got especially ugly when CNBC’s Jim Goldman reported that Palm management was not truthful about the reason why work was suspended at a Chinese manufacturing partner.
"Palm’s got a credibility problem, and it’s the kind of thing that seems so insidious, and so systemic, that it might pose a deep threat to the company’s ability to keep going. That’s because the number of people who believe what this company is saying seems to be dwindling."
Things are not looking good. At the end of the trading day on Friday, PALM was down to $6.09, which is perilously close to the company’s 52-week low ($5.85 on March 9, 2009). Not a pretty picture.