This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Palm Seeks $49M With Stock Resale

Cash-hungry Palm (PALM) seeks to raise about $49 million from the resale of 18.5 million shares held by its investment partner Elevation Partners.

The move, announced in a filing Monday, calls for Elevation to sell 49% of its recent $100 million investment in Palm. Elevation received 100 million units of preferred stock and warrants in December, when it stepped up its investment in the Sunnyvale, Calif., smartphone maker.

Palm says it expects Elevation to use the proceeds to buy the common stock through the public offering.

To date, Elevation has invested $425 million in Palm in an effort to bring the tech shop back from the brink of collapse and regain its leadership position in smartphones. The efforts have delivered in the form of a well-received touch-screen Palm Pre phone. The prospect of a successful device, to be sold exclusively by Sprint (S), has helped push the stock up 100% this year.

The Palm Pre is expected to compete with Apple's (AAPL - Get Report) popular iPhone, sold by AT&T (T - Get Report) and the Research In Motion (RIMM) BlackBerry Storm, sold by Verizon (VZ - Get Report).

News of a new public offering however, threatens to dilute the number of outstanding shares. Palm's stock was down half a dollar, or 8% to $5.65 in pre-market trading Monday.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $127.60 2.28%
S $4.99 -2.35%
T $32.83 0.98%
VZ $49.38 0.98%
FB $83.09 2.87%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs