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Reaction from the Street to Sprint’s June 6 Announcement+ T3 Q$ ^/ H8 B5 f9 w- _9 _# `6 ^# D
( f+ [! \/ H! O. o7 OBy Annie Latham | Wednesday, May 20, 2009 |
0 z8 k" s; v& p2 m: G; x/ _6 M6 yAfter reaching its highest level since October 2007, $12.10, Palm's stock [PALM} retreated a bit on Tuesday following the Sprint announcement, closing at $11.68 (down $0.38). It's down to nearly $11 as of this posting. Before you panic, note that it's fairly typical for a stock to drop a bit after a big announcement.
' c6 K. n6 y! Y( N- ^1 nAfter the break, we present you with a roundup of some of the comments being heard on finance-related sites
# E/ x* W" C; O[Seeking Alpha] Why Is Sprint Launching the Pre Two Days Before Apple's WWDC?
# X' }* J' t: Q s. q6 P. z9 C9 FJohn Biggs at SeekingAlpha.com talked about the three reasons Sprint (S) and Palm (PALM) could have chosen this date:; `( w2 {2 r: s, {8 N" E
- The first reason is the most cynical: if they launch a dog the news cycle will quickly turn to Apple (AAPL) and they will be spared the sad and steady clamor of angry Palm zealots.
- The second reason reeks of hubris, albeit of the well-deserved variety. …So why not take on the biggest kid on the block? By launching two days before anything Apple is launching, they could own the news cycle"
- The third and final possibility is the least likely one: Sprint ham-handed this launch for Palm and essentially ignored all outside factors and just wanted to get something out on a nice Saturday - note that they’re launching on a Saturday in order to ensure long lines and plenty of ink - in June.
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[TheStreet.com] Sprint Shows Pre-Posterous Timing" X1 @6 s2 m( x. S8 H
Scott Moritz at TheStreet.com “congratulated” Sprint and Palm:“Your make-or-break Pre phone has a mere 48 hours of limelight until Apple unveils a new iPhone with a cheaper calling plan.” He also remarked that June 6 “is a day later than recent expectations and far more expensive than the $150 price tag some analyst had anticipated.”- Q, T; h2 d$ t" ~! Z* e2 n3 S( J$ x6 j
[Digital Daily] FINALLY: Palm Pre Shipping June 6 for $199.99
8 |9 }( \( V HJohn Paczkowski, in his Digital Daily column that appears on the All Things Digital site, remarked,“Seems that in the end, Palm decided it would be folly not to match the $199 price of Apple’s iPhone, though according to CEO Ed Colligan the Pre is far superior to it.” He also quoted JP Morgan analyst Paul Coster, who said, “The $199 price point was absolutely necessary, in our view, to go head to head with RIM and Apple.”
! m/ {: D3 _' ]% }4 HPaczkowski, in a post on Monday, theorized how Palm may be hoping the Pre will benefit from the iPhone halo.7 _: f; X9 D! k# I/ m( g4 b- B
“…That gives Palm very little time in the limelight that Apple will inevitably steal from it. But perhaps that’s the point. By debuting so close to the presumed announcement of the iPhone, Palm would be ensuring that its new device is fresh in the minds of anyone mulling the purchase of Apple’s latest offering–or writing about it. It would be parasitically riding on the back on the Apple media juggernaut. Question is, can it hang on without getting trampled?”
, Y& z# v* z3 m5 F1 b& I4 q& [ [TheStreet.com] Cramer's 'Stop Trading!': Pick up Palm6 [7 [# Q( ?5 @' Q
In a separate post at TheStreet.com, it was noted that during CNBC’s "Stop Trading!" segment Jim Cramer recommended buying Palm until it releases its Pre phone and then selling, "Because that's what happened with the iPhone. The hype was so great." He said that Palm could end up being a long-term player, though. "Sell some after the hype, but then if it goes back down, you buy it. Palm's got some really smart people behind it."- W' I3 b f$ S
[CNBC] The highly anticipated Palm Pre launches next month% K. G. y! U5 P0 H! L0 w
CNBC's Jim Goldman aired a piece (01:21) on Tuesday about the June 6 announcement referring to the Pre as being “a shot across the bow of Apple Inc.” and asking, “Can Palm live up to the hype?”
2 x" n" ~4 u0 @4 nUs, we're pretty sure they can. |
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