Palm Falls…Again; Puts Purchased…Again
April 19, 2010 10:30 AM
Palm (NASDAQ: PALM) is selling off again this morning, currently trading lower by 7.16% to $5.19. This action comes after Morgan Keegan & Co downgraded the stock to “Underperform.” Travis McCourt, analyst for Morgan Keegan, believes that the company is unlikely to negotiate a buyout and that the exit of their software chief does nothing to support confidence in the name.
Puts are being purchased in Palm once again this morning. Today the action is coming on the May $4 put line, where over 6,000 contracts have traded, the vast majority purchased on the offer. Short interest is extremely high in the name, over 39%, which should come in to support Palm at some point.
Harbinger Capital recently announced that they had a 9.48% passive stake in the Palm.
