Media reports suggest that Palm is seeking buy-out proposals. The shares were already up 35% last week on the rumor that HTC and PC maker Lenovo are considering bidding on the company.
Palm Stocks Rising on Rumor of Take-over
Palm became an acquisition target when their stocks fell to the lowest levels in a year with the market share reports showing the losing struggle to sell its Smartphones amid fierce competition from iPhone and BlackBerry. Palm reported that it sold less than 50% of the Smartphones it shipped in the 3rd quarter of last year. Palm said it expects fiscal 2010 revenues to be well below its prior guidance range of $1.6 billion to $1.8 billion owing to lukewarm response to its products.
With the rising value on the shares, it looks like it may be a good time to buy Palm stock. Are you willing to take the gamble that Palm will be bought out by a successful company and therefore make you money? Not me. The stock market is iffy at best, and this inflated stock price is all based upon rumors!
