Will Palm Rebound?

PalmThat’s the question being asked in a recent Globe and Mail article. With all the rumors surrounding a Palm buyout, and a 10% stock slide in response to their poor fiscal showing last week (with lower than expected results for last quarter and a lowered guidance for next quarter), it’s a legitimate question. If you’re looking for answers, however, you’re going to find mixed views from the “experts.”

Some analysts were impressed by Palm’s fiscal 2007 projections of 25% growth and Zacks Investment Research recommended the stock as the “bull of the day” based upon long-term potential. Others, however, weren’t so sure, fearing continued strong opposition from RIM and Motorola.

“We are concerned that Palm’s lead is unsustainable given the competition from other major handset vendors, which could lead to increasing pricing pressures,” Bear Stearns analyst Andrew Neff said in a note. He projected sales growth of 5 per cent for fiscal 2007, well below the company’s guidance.

Palm will probably be fine in the long-term, but the BlackBerry Cool staff doubts they’ll ever become a market leader (although, we are a bit biased). To read the full article, go here.

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