Palm, going once, twice, sold!
April 28, 2010. By Arnold Rapinan
This is a follow up to my last post, "Who will buy Palm?" After the market closed today, HP announced that it agreed to buy the troubled smartphone maker for $1.2 billion in cash, that's an equivalent of $5.70 per share, representing a 23% premium over today's Palm closing price of $4.63. Expectedly, Palm's shares during extended hours high rocketed (see chart on the left). As for my $9 buy out prediction, I was only 60% right.
And for my few experimental shares, I sold them last week at a lost. If I held them a few more days, I could have earned a few weeks worth of free lunches. Fortunately, my loss wasn't significant that my wife is not making me take peanut butter sandwiches to work. As for Palm, good for them, I guess, but let's give it another three years and we'll be saying "Palm who?"