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Friday, March 27, 2009

PALM On Fire... Still no News on Pre Release Date or Price

Palm has been on fire the last 3 weeks, but still no news about the Palm Pre release date or price. I think that the release date should be around the corner. I have a feeling as posted earlier that the info should be released before Friday April 3, but that is just a hunch- no reason for thinking that-a.k.a. a blind guess. I just figured that Palm would have this phone out by mid June, and they'd want to give it at least 3 months for people to know when it is being released, and pre-order etc... Palm came out with really bad numbers on March 19th showing a loss of .86 a share, when the consensus was for .59 per share. My assumption is that the phone will be released about 1-2 weeks before their 4th quarter results, which is on June 22, they will be able to state some info about how well/bad the pre is selling in their conference call. I am sure Palm will miss the 4th quarter again, without any help from the Palm Pre, but they will still be able to keep the stock price up assuming sales for the new smartphone are going well. I think Sprint will be subsidising a nice portion of the phone, and it could run around $299 with a 2 year agreement (I am waiting to renew my Sprint service for this phone). I think overall we should have some more clarity about the Pre in the week to come. I think if they wait more than another month to release this info, investors may start to get frustrated and sell the stock. As stated before the short interest on this stock is extremely high! The current short interest is 54.04%, even higher than before. If Palm hits a home run with this Pre smartphone, this stock could get to $15 easily or even $20, without making a dime on earnings! The only bad thing is that it is exclusively for Sprint for the time being, and this could hurt them, because I cannot see too many people changing carriers for this phone. Let's face it the entire universe is excited about the Palm Pre, if they do it right palm will certainly be a top competitor in the future with the Pre and Pre like devices to come!

You can certainly tell some Ex-Apple Employees were in on the making of this device, much different from any other Palm Treo or Centro device in the past.

Much better than the iPhone in my opinion, because I need an actual keyboard on the phone. I have the HTC Touch Pro and if I don't slide out my keyboard it is extremely difficult to type on the screen (only way to type on an Apple iPhone). Pre also has the slide out keyboard which allows the screen to be much larger than any other Palm device in the past, another plus!

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