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Friday, March 13, 2009

Palm Pre Release Date and Price News

It is rumored that the Palm Pre is getting released exclusively from Sprint on June 14, 2009 for sale on June 15, 2009. Nothing is concrete yet, but this is a heavy rumor. I believe the release date is soon to hit the media because of the recent pop in the stock. It seems to me that the street is predicting Palm to come out with this news about the PRE very soon. This phone is said to be Palm's savior and is said to be Apple iPhone's best competitor. I believe when Palm and Sprint release this information we could see a nice rally in PALM. I recently bought back my covered calls on Palm for a very nice gain, and I am waiting to hear this news to write them back out. The charts say if we can get PALM over $10 a share we could see it rally to $13-$15 quite easily. Today Palm and Sprint got together to give investors/consumers more information about the new Palm PRE, however they have already been criticized for not releasing the two most important pieces of information- the release date and price. I think that the release date and price info are soon to be known, as I can tell from the recent activity in the stock. Wall Street has a strange way of predicting things, and I think this may be one of them. I say Palm releases this critical information within 3 weeks (by April 3). This will be an extremely HOT phone (I will be getting one) and assuming the price is reasonable for consumers (within $200-$400), this should cause Palm's stock to go even higher. The short interest on this stock is over 50%! The potential short squeeze here is HUGE!

Palm has outperformed the NASDAQ in the last 5 trading days by about double, whereas shares of AAPL and RIMM have both underperformed the NASDAQ's performance in the last 5 trading days. Click the chart below to get a larger more detailed picture.

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