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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (57781)	4/27/2002 8:04:56 PM
From: American Spirit	Read Replies (3) \| Respond to of 99280

I believe it's a sweetheart deal from TI. Maybe they're guaranteeing part of it in some way. But even if PALM does borrow 200 mill I say, fine. It's new debt and they're on the recovery road so operating cash is always a good idea, and the interest rates are bound to be low. Now that PALM's competitors are looking crippled, time for PALM to extend its lead on them. To do that requires cash. Skechers did the same thing last year, borrowed for a big ad campaign and new retail outlets. Turned out to be a great move. But bashers were pointing to it as a sign the company would collapse and die. That was when the stock as at the bottom. They couldn't have been more wrong. The stock has more than doubled since. I predict the same for PALM within the next 6-9 months.