PALM Slapped Back Down

Originally Published In the News October 2, 2007 9:04 AM

The best paired trade of the past year might have been long RIMM/short PALM. At least, one side of that trade will pay off again today. Palm’s (PALM-NASDAQ) earnings release won’t rally the troops, and bottom fishing here seems to be as tough as it is in the homebuilders. New gadgets from Palm are getting a lot of press attention, but until translates into higher revenue and profits the stock is likely to remain a punky teenager. Maybe the company is eventually bought out, but the number might not have a 2 in front of it if it happens. You can have this stock, Jeff Macke. And just so you know, people are whispering that you are money in the bank, as a contrary indicator.

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