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Commentary: PALM a Buy, Sell, Hold or Other?
PALM stock closed out last week at $9.99. There was a bit of uplifting news starting with Citi raising its rating to Hold from Sell. Another firm, Wedbush Morgan Securities initiated coverage of the shares with a Neutral rating and price target of $10.50. The last bit of uplifting news was talk about the Pre possibly arriving at AT&T in May. Also, Citibank believes that more insight into carrier interest for Palm's webOS devices may come out during the Mobile World Congress (Smartphone Experts has a team attending and will be providing reports and insights).
Today, Motley Fool's Rich Smith, posted a story that delved into the viability of Palm.
Palm investors need a slap upside the head...
How can I say this? How can a company that millions of investors value at $1.6 billion be nearly valueless in my opinion? The way I look at it, there are two ways to value Palm. You can value the company as a going concern -- a business that makes and sells products, collects revenue, and earns profits. Or if the company proves incapable of earning a profit, you can assume that rational management will exit the business -- either by selling out, or shutting down. Unfortunately, under either scenario I don't see any worth in Palm
Ouch!
He goes on to talk about "if Palm lives..." and "if Palm dies..." wrapping it up with "do the math."
So far this week, PALM has gradually descended to close in the $9.60 range. The announcements out of Barcelona, especially the new Windows Phone 7 Series, seem to reinforce the Fool's feelings -- especially his reference to Palm nearing its BenQ moment.
Again, we are in a wait and watch mode.
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For those wanting to get up to speed on the Windows Phone 7 Series, over at our sister site, WMExperts, there are plenty of posts:
Video Hands-on
WMExperts Podcast - Windows Phone 7 Series special at Mobile World Congress
Windows Phone 7 Series: Answers and Questions
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