Speculation of Palm Production Cut: But, Stock Holding Up Well & Palm Has About a Year to Prove Itself

Barron’s, the old and well-respected financial paper, reported mid-day yesterday that…

Palm Reportedly Cuts Pre Production Plans

A Collins Stewart analyst claims that Palm shipped less than 300,000 Palm Pre devices in May and June (launch period). The analyst also claims (with no substantiation given) that Palm reduced 2009 production by 500,000 units. Despite this report and a Sell call from another analyst, Palm’s stock is holding up very well. It closed up 5.53% on Thursday and has dropped a mere 0.22% (3 cents) in after hours trading (so far).

TheStreet.com’s Scott Moritz reports…

Palm’s Pressure Mounts: Tech Rumor of the Day

…and that it has $255 million in cash and $394 million in debt. Palm used $72.4 million in cash in the last quarter. At this burn rate, Moritz’ estimates they have about a year of cash left (unless new cash comes flowing in).

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