The Money Play Is Palm. (NASDAQ:PALM),
Palm, Inc. (NASDAQ: PALM) has been under intense sell pressure since the January 9th, 2010 high was made at $14.17. Since that point, the stock price has fallen to a low today of $6.07. This is just slightly off the 52 week low of $5.85. The 5 week dramatic fall in Palm, Inc. culminated with a warning yesterday from the company that fiscal third-quarter and full-year revenues would be far below Wall Street estimates.
From the stock action in the previous 5 weeks, it seems Wall Street already knew this. The question remains, when is it a buy? At these current levels, the stock looks extremely attractive for a few reasons. First, the volume yesterday on the massive warning and price flush could and most likely signals capitulation. This would signal a possible price reversal in the short term. In addition, the price today came just above massive support at $5.85. The key on the stock would be to watch the close of today. If the stock closes above the low from yesterday, the short term bottom is most likely in and a bounce could be seen. This is just a short term bounce expected.
With the stock having fallen from $14.17 to a low today of $6.07 in just five weeks, Palm, Inc. is extremely oversold near term. The stock has been punished and volume and price does indicate a bottom.
Disclosure:Gareth Soloway does own Palm, Inc. stock
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
Please Note The Chart Here:
http://inthemoneystocks.com/n_rant_and_rave_blog_single.php?id=5899
Disclosure: Gareth Soloway does own Palm, Inc. stock at the time this article was written. He may sell at any time.
