With Palm stock up 354% since Jan 1st and poised to hit a 20-month high, can Thursday’s earnings report do anything but disappoint?
Palm’s quarterly release Thursday is arguably the most important in the company's recent history. This stock has been on a wild ride since January, and on Thursday investors will learn whether they're aboard a rocket to the moon, or a nuclear missile ready to explode, writes CNBC’s Jim Goldman.
He also says, the Street anticipates a loss of 64 cents on $79 million in revenue for Palm's fourth fiscal quarter. That’s right Goldman anticipates deep red ink on paltry revenue.
Sounds like it’s time for a short position.
But wait. RBC Capital’s Mike Abramsky, expects investors to look past soft fourth-quarter results and focus on the potential for growth in the next fiscal year. According to published reports he thinks Palm has already sold 150,000 Pres with demand strong and inventories low.
And that’s not all. Abramsky also expects Palm to release a streamlined budget version of the Pre for around $99, close to the end of 2009.
So how should you trade this stock?
We have a $14 target price on Palm, says Citi analyst Jim Suva. (And that’s about where it was trading ahead of earnings).
It seems expectations are really getting high for the Pre. However, if the stock pulls back to $10 I’m a buyer, Suva adds.
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Trader disclosure: On June 24th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Finerman's Firm Owns (MSFT), (WMT); Firm Is Short (WFC); Finerman's Firm Is Short (IWM), (SPY), (MDY), (IJR), (USO); Finerman's Firm And Finerman Own (BAC) Preferred Shares, Finerman's Firm Is Short (BAC); Finerman's Firm And Finerman Are Short (WFC) Preferred Shares, Finerman's Finerman's Firm And Finerman Own (FLS); Jon Najarian Owns (AAPL), (BRK.B), (JPM), (MS), (RIMM), (WFC), (WMT), (YHOO); Jon Najarian Is Short (AZO); Terranova Owns (TER), (XBI), (BTU), (ABT), (RIMM), (HES), (MS), (MSFT)
Terranova Works For (VRTS); Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV), (ABD); Virtus Investment Partners Owns More Than 1% Of (ABD), (CAL), (CLB), (DLR), (EPR), (EXR), (IGE), (MEE), (DBC), (DBV), (DBA), (SKT), (UA), (WBMD); Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights; Virtus Investment Partners Owns More Than 1% Of St Mary Land & Exploration Co
For Jim Suva
Citi Employees Own (RIMM), (GLW), (MOT)
Citigroup Global Markets Or Affiliates Owns 1% Or More Of (PALM), (RIMM)
Citigroup Global Markets Or Affiliates Managed An Offering Of Securities For (TEL)
Citigroup Global Markets Or Affiliates Has Received Investment Banking Compensation From (JBL), (CELL)
Citigroup Global Markets Or Affiliate Received Non-Investment Banking Compensation In Past 12 Months From (MOT), (GLW), (TEL), (APH), (JBL), (PALM), (CELL), (MOLX)
(APH), (JBL), (MOT), (TEL), (CELL) Are Or In Past 12 Months Were Investment Banking Clients Of Citigroup Global Markets
(MOT), (GLW), (TEL), (APH), (JBL), (PALM), (CELL), (MOLX) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Securities Related)
(MOT), (GLW), (TEL), (APH), (JBL), (PALM), (CELL), (MOLX) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Non-Securities Related)
Citigroup Global Markets Or Affiliate Received Compensation In Past 12 Months From (APH), (JBL), (MOT), (TEL)
Citigroup Global Markets Is A Market Maker In (PALM), (RIMM), (CELL), (MOLX)
Finerman's Firm Owns (APC), (RIG), (TBT)
Jon Najarian Owns (LM), (PALM)