While the new Palm phone looks impressive initially, it still can't save Palm from the fate of being crushed in a competitive market of much bigger players.
1st issue: an exclusive agreement with Sprint, a carrier in trouble with dropping market share and quality issues (a recent Consumer Reports article reported them consistently below other carriers in call quality).
2nd issue: Apple, Google, Microsoft, etc, all desperately wanting to be in the sector and with loads of cash.
3rd issue: Palm could be bought out, but any buyer will wait for a pullback or bankruptcy.
If you can't short PALM, try buying May 09 5 or 7.5 puts.
$6.1084 (01/09/09)
