Palm Stock Plummets – Business Week Says Palm Has Enough Cash for 15 Months

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Graph courtesy of Yahoo! Finance: Apple (blue), Palm (red), Nokia (green)

Palm has about $590 million cash available according to Yahoo! Finance’s balance sheet information about the company. That sounds like a lot. But, according to Business Week, this cash can only keep Palm running about 5 quarters (15 months).

Palm Under Pressure After Sales Shortfall

So, what can Palm do in 15 months? Some speculate it will be bought by another company. This doesn’t seem likely to me. What would this purchase bring to the buying company? Engineering talent? That can be done without buying the entire company. Technology portfolia? webOS is a nice platform. But, it isn’t exactly a world beater. Palm could introduce a new product that sets the mobile world on fire. Possible, but I haven’t read any rumors to indicate that. And, 15 months is not a lot of time to develop a whole new technology base. Palm could simply fade away with interesting bits and pieces bought by IP (Intellectual Property) companies who look to control patents.

I have no idea which of these scenarios is most likely to play out. Although as I said, I don’t see the buy-out/merger route to be as likely as others might.