PALM closed at $3.76 very closed to its 52w low of $3.65. Is it a good opportunity to invest in PALM? or is it the "end of PALM"? The very quick FSA shows that their operating modus vivendi is unsustainable: COGS/Sales is about 80% and SG&A/Sales is about 30% .... well when you spent at least 110% of your revenue you cannot do so very long .
Looking at their Z-score is also interesting : between 1.1 and 1.0. Hmm, so they do are in their distress zone?
Buying PALM is a very interesting bet on PALM's management and innovation capability. In addition, if you add other external factor like the announcement of an iPhone for Verizon that would compete with the Treo... well you have a perfect coktail for some price swings and volatility.
May be a good stock to short ?
1 comment:
4/12/2010: PALM announced they are on sale.
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