Palm’s decision to increase the size of its previously announced public offering of common stock to about 23.125 million shares from 18.5 million shares turned out to be a wise one. The value of the company’s stock rose sharply this morning, topping out at around $6.85–an increase of well over 13 percent. Clearly, the $83.9 million Palm (PALM) netted from the sale went a long way toward reassuring investors that it can afford to give the Pre the strong launch it deserves. And make no mistake, that launch will be costly. Consulting firm Altman Vilandrie & Co. estimates that Palm will have to spend between $50 million to $75 million to have a decent number of phones ready for the Pre’s debut and up to $50 million to market it. That $83.9 million’s going to come in handy.
John Paczkowski has been poking fun at the tech industry and the personalities that drive it since 1997. From 1999 to 2007, he wrote the award-winning tech news Web log Good Morning Silicon Valley for the San Jose Mercury News, Silicon Valley's daily newspaper. Read more »
Here is a statement of my ethics and coverage policies. It is more than most of you want to know, but, in the age of suspicion of the media, I am laying it all out.
12:58 AM: Breakfast: Two schools of fish from Tokyo Bay. Calories: 782,000. How I was feeling when I ate this: confused, irradiated, hating my size. 11:37 AM: Exercise: “Taxi Stomp” (alternating legs, for 30 blocks). Calories burned: 148,900,183.
1983. The Beatles announce their first tour in thirteen years, but likewise announce that Michael Jackson will be going on tour with them as a one gigantic mega-concert event.
Palm’s decision to increase the size of its previously announced public offering of common stock to about 23.125 million shares from 18.5 million shares turned out to be a wise one. The value of the company’s stock rose sharply this morning, topping out at around $6.85–an increase of well over 13 percent. Clearly, the $83.9 million Palm (PALM) netted from the sale went a long way toward reassuring investors that it can afford to give the Pre the strong launch it deserves. And make no mistake, that launch will be costly. Consulting firm Altman Vilandrie & Co. estimates that Palm will have to spend between $50 million to $75 million to have a decent number of phones ready for the Pre’s debut and up to $50 million to market it. That $83.9 million’s going to come in handy. 
Comments
Buncha wackycrackheads they have over there. Even wackycrackheads get lucky, though, sometimes.
Posted by Mark Omega at March 10th, 2009 at 1:26 pm