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 Send to email | Monster, Earthlink, Palm Blow It Again, Buy Millions in Auction-Rate Securities in INTUELNKPALMMNST |  By Silicon
el 28-Mar-2008 |  How do you compound the misery of having a crappy business and a collapsing stock price? Stick your company's precious rainy-day fund in "cash-like" auction-rate securities.
Auction-rate securities, for those who haven't been following the credit crunch, are muni bonds whose rates are frequently reset at auction. For a while, they did what they were designed to do--allowing towns and cities to borrow money at slightly lower rates and "cash" investors to earn slightly higher ones--and this led Wall Street to declare them safe. Alas, these days many auction-rate securities can't be sold for love or money, which has left firms like Monster, Earthlink, Palm, and Intuit stuck with mountains of unsaleable paper.
Monster's (MNST) in the worst shape, says the WSJ, with $357 million (about 60% of cash balance).
Intuit (INTU) has $328 million (about 20% of cash balance).
Palm (PALM) $75 million (about 15% of cash balance).
Earthlink (ELNK) $60 million (about 20% of cash balance).
Will these massive piles of "money" ever be saleable at their face value? Possibly. If the economy doesn't melt down completely, the auction-rate market should eventually un-freeze, and the companies should be able to unload them. But at the very least we're probably looking at write-downs.
More at the WSJ ($)
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| Palm 800w comes to the party |  ….albeit a bit late for the many Palm faithful that have jumped ship for more exciting waters. Those that have remained, however, have a little bit to look forward to. The Palm 800w is set to be the first Palm device with Wi-Fi, GPS, and EV-DO Rev. A, all of which should be supported and [...] [..] Read complete article | | Published 16-May-2008 by Joshua Karp in General
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 | Kotaku`s The Gamers Guide |  Blogger | XBOX 360 Gamers Weblog
Gossip, news and leaks for obsessive gamers Kotaku As if you don't waste enough of your time in a gamer's haze, here's Kotaku: a gamer's guide that goes beyond the press release. Gossip, cheats, criticism, design, nostalgia, pred |
| Kotaku`s The Gamers Guide | Blogger | XBOX 360 Gamers Weblog
Gossip, news and leaks for obsessive gamers Kotaku As if you don't waste enough of your time in a gamer's haze, here's Kotaku: a gamer's guide that goes beyond the press release. Gossip, cheats, criticism, design, nostalgia, pred |
| Child's Play Auction Rakes In $200K [Child's Play] | | The Penny Arcade team held their Child's Play charity auction dinner last night, selling off neato stuff to raise money for sick kids. And raise money they did. In case you missed the "K" at the end of that headline, the dinner raised over $200,000. The rate at which these even [..] Read complete article | | Published 10-Dec-2008 by Luke Plunkett in Child's Play Charity News Penny Arcade
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| Palm secures additional equity investment, shares rise 13% |  Palm announced today that the equity firm Elevation Partners has agreed to make a new investment in Palm that will total $100 million. Elevation Partners, who purchased 25% of Palm in September 2007, will purchase preferred stock that is convertible into Palm common stock at a price of $3.25 per [...] [..] Read complete article | | Published 22-Dec-2008 by Kelly Hodgkins in NewsPalmCESElevation PartnersEquity InvestmentNovastock
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