Dirkyp

Pre Device Makes Palm a Short-Term Buy - UBS

I know Goldman thinks it's worth $0.40 per share, or a decline of over 90%.

The Pre is a nice unit but is more or less a me-too product, they can't compete against massive rival's RIM, Nokia, and Apple, and Sprint will likely be the only tier 1 carrier offering it for a long time. And it won't ship for several quarters which means the hype will die down and other devices will be announced.

In the meantime PALM is burning lots of its cash - estimate of $100M over next 4 quarters - they only have $185M or so, and they have $400M in debt so they may have to raise dilutive equity.

So poor consumer environment, smartphone competition heating up significantly, inferior carrier channel, cash burn, and post-CES hype.

My view is that a home run is priced into the stock and that at best they might hit a single before it starts raining and the bankers call the came.