Readers of TamsPalm could have told investors this some six months ago – but its always nice to see financial analysts eventually understand what the game is all about.
Reuters reports that a Morgan Keegan analyst states that he is unsure about Palm’s ability to roll Nova without further capital:
“We are increasingly concerned that Palm has little room for additional missteps prior to its new platform launch next year without needing to raise additional capital,” McCourt said, noting that Palm filed a shelf registration on Monday that would allow it to issue debt, stock or other securities to raise funds.
“Although needing additional capital (if it comes to that) is not the end of the world for Palm, given its deep-pocketed backers at Elevation Partners, it is impossible to determine ultimately how dilutive such a capital infusion may be to common shareholders,” McCourt said”
What do you think?
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