I have followed Palm Inc. (PALM) over the course of the last year and believe they are entering a critical phase. There are many aspects of the Pre that are unlike any phone you’ve every seen before. The (PALM) Pre is the first one that is the next generation and the result is it does a bunch of things the others guys don’t do. The (PALM) Pre is designed to be the first phone based on the Palm WebOS platform and as a result it will have different operating characteristics and features than other phones. Approximately 23% of all new mobile phones will be smartphones by 2013. The iPhone was the best Smart phone. The (PALM) Pre and the WebOS are not just better, but they are leaps and bounds better. The (PALM) Pre and its WebOS are going to be a destructive technology. Really the only advantage the iPhone has is that it can be purchased today whereas the (PALM) Pre will not be available for a few months down the road. Nevertheless, the Pre does not need to trump the iPhone to be successful if you believe in the forcasted growth in Smart Phones.
The HUGE wildcard is whether Palm has the ability to license the WebOS to anyone who thinks it can give Android or the iPhone a run for their money. We think any interested parties (Motorola (MOT) or (DELL)?) are probably going to wait and see how well it does in the marketplace before making any decisions. However a larger company taking them over is NOT out of the picture. That puts the matter into Q3 or Q4 of this year as a guess.
PALM still has a sizable short position which helps limit downside. Depending on what the market in general does over the next couple of months I see Palm as a potential winner going forward. Utilize the FREE analysis below to get a report on Palm. Just enter in your Name, E-mail and Ticker symbol PALM. I think Palm is a winner.
This is a list of top research analysts based on the accuracy of earnings estimates on PALM, according to StarMine. Analysts that appear here are limited to those covering PALM for a significant period of time. Click Here to see how they rated Palm.
