A private equity firm said it is not looking to unload its large stake in Palm (PALM), refuting a report by an analyst this week that suggested the struggling handset maker would be in need of cash if that were to occur.
Despite what should be taken as good news, Palm shares were down nearly 9% Tuesday to $2.04. However, it's not a mystery why shares of the device maker continue to trade near five-year lows. Global Capital Crown analyst Pablo Perez-Fernandez believes it's time for investors to be asking tough questions about Palm.
In a report released Monday, Perez-Fernandez said that a new round of layoffs by the company, as well as a regulatory filing saying it would sell any of a number of securities, including preferred shares, hinted that Elevation Partners, the private investment firm co-founded by music icon Bono, may be giving up on Palm.
"This would be consistent with the declining share price and our belief that