Strategy Session with the Fast Money traders
It’s interesting to me that Palm stock traded up to $5.90 in the after market, says Karen Finerman. That's above the deal price. Maybe there’s another suitor, she muses, but I wouldn’t make that bet. And for anyone interested Goldman and Catalyst were the bankers for Palm, she adds.
$1.2 billion for Hewlett Packard is like buying a Snickers bar for you and me, says Guy Adami. I’d be a buyer of H-P on the weakness. And RIM sold off in the aftermarket on the news. I’d be a buyer of that stock too.
The merger makes me more bullish on the space overall and as a result I’d keep an eye on Qualcomm, says Tim Seymour. I’m a buyer.
HP needed to get into mobile, says analyst Pete Misek of Canaccord Adams, and this was a cheap way to do it. Imagine what it would have cost if they had to acquire Nokia. And I think Palm must be breathing a huge sign of relief. (You might remember Misek was among the analysts who had a $0 price target on the stock.)
As a second derivative trade, I’d look at NVDA, counsels Patty Edwards. They provide 3D software which I think could be incorporated into H-P's new gadgets. And I’d look at Best Buy and RadioShack , which will be selling the new gadgets.
What do you think? We want to know!
As you might remember, on Friday March 19th, Fast Money spoke at length about Palm’s prospects with Whitney Tilson of T2. At the time he told the desk I’d say the odds are 60% that somebody buys the carcass for a song and 30% that they file for bankruptcy, he adds. And there’s a 10% chance of a Hail Mary pass and they survive.
Now he tells us, we really thought given the trends in the business the company would be acquired when it was trading down near $1 a share.
