Palm Breaks Down In After Hours (PALM)
About an hour ago, I wrote an article about Palm's (NASDAQ: PALM) third quarter earnings report. The company missed EPS estimates by a fairly wide margin, reporting a greater than expected loss. Palm (PALM) did report revenue numbers which came in above analysts' estimates. A cursory review of the report suggested to me that Palm really did not have much to offer as far as upside. This was particularly true when you consider that the stock rallied 5% today ahead of the earnings release.
Therefore, I was a little puzzled as PALM shares moved marginally higher after this report hit the wires. SInce that time, however, things have begun to crumble in PALM. The conference call is currently underway and Jon Najarian said that it is one of the least optimistic calls he has heard in some time. Reportedly, the CEO said that he was incredibly disappointed with the results. Where are PALM shares now? Down a whopping 12.74% to under $5 at $4.93. Look for huge volume in this name tomorrow, as it should attract a lot of attention. It appears to me that the company will continue to remain under enormous pressure, as the shares have lost over 60% in the last 6 months.
