Times might be all smiles and sunshine at the likes of Apple and RIM at the moment, but for veteran handset manufacturer Palm employees are probably dreaming of the glory days after stocks plummeted.

Analysts have downgraded the stock and called into question whether the company can raise the capital necessary to turn its fortunes around.

Heavy fall

Analyst for Morgan Keegan Tavis McCourt said that the company's cash balance is set to fall heavily to $75m next year after the launch of a new platform.

The note also highlights the company has little room for failure in a increasingly congested handset market without having to raise the difficult capital.

Over the course of 12 months, Palm's stock has fallen nearly fifty per cent as other smartphone manufacturers bring out new handset to attract users, notably the likes of Apple with the iPhone 3G and RIM with the BlackBerry Storm (you may have read about them recently? Hmm?)