NEEDHAM CUTS ESTIMATE FOR PALM
Needham analyst Charlie Wolf says Palm's (PALM) fourth quarter GAAP loss of $0.40 compares to his $0.13 loss estimate, while $296 million revenues were $50 million shy of his forecast. He notes that the real hope for the company rests with thoroughly modern Palm OS it plans to complete by yearend in combination with a line of completely redesigned smartphones.
Wolf says his skepticism regarding Palm's chances of success stem from the fact that the company's major competitors have not stood still: Research in Motion (RIMM) is on a dramatic tear; Apple's ( AAPL) next-generation iPhone 3G will launch shortly at a mass market price point; handsets running on Google's (GOOG) Android platform should appear before yearend.
He cuts $0.20 fiscal year 2009 (May) GAAP EPS estimate to $0.25 loss. He maintains an underperform opinion on the stock.
COWEN CUTS REVENUE ESTIMATES FOR MICRON TECHNOLOGY
Cowen analyst Daniel Berenbaum says he remains on the sidelines following Micron Technology's (MU) mixed report. He notes management guided for much slower NAND bit growth than he expected; this helps near-term profitability (losing less money), but weakens long-term market positioning.
He says imaging, opex control, less NAND sales drive EPS model upside, but cash burn is still alarming. He narrows $1.25 fiscal year 2008 loss view to $1.17 loss, but cuts revenue. outlook to $5.9 billion from $6.1 billion; narrows $0.49 fiscal year 2009 loss to $.36 loss on $6.6 billion revenue (down from $7.8 billion).
Berenbaum says it's tough to see how memory industry fundamentals will permit any sort of sustained upwards move; he expects the stock to remain in trading range around current levels. He keeps a neutral opinion on the stock.
CALYON UPGRADES QUICKSILVER RESOURCES TO BUY FROM ADD
Calyon analyst Jeb Armstrong says for Quicksilver Resources (KWK), he's raising the percentage of net asset value used in valuation by 5% to 65%-75%. He notes consensus oil and gas price forecasts have moved closer to his forecasts since his last update. He says long term price strips for oil and gas have moved up favorably, providing him greater confidence in forecasts.
Armstrong says the changes only affect rating on KWK, noting the stock is off some 15% from recent high. He says the identity of KWK's second stealth play remains a mystery. He notes excitement over the company's position in northeast British Columbia appears to have ebbed as attention turns to companies with exposure to Haynesville shale in northern Louisiana.
He ups 47 price target to 51.