August 10, 2004
SpeculatingStocks.com Stock Pick: palmOne, Inc. (PLMO)
Stock Price: $37.14 (long-term strong buy)
palmOne, Inc. once known as Palm, Inc. is a developer, designer, and marketer of Palm-branded hand-held devices and accessories. Palm, Inc. combined the assets of Handspring, Inc. (HAND) and Palm hardware division to form palmOne, Inc. (PLMO). The software division of Palm containing the operating system was spun-off into PalmSource, Inc. (PRSC).
Since the end of February PLMO has ran up as much as 300% and appears to have room to run higher.
palmOne, Inc. has pulled their best assets together and now has the ability to obtain great profitability. For Q4, the company reported net income of $13.3 million on a 23% jump in revenue to over $267 million. Analysts had only expected $256 million in revenue. PLMO has been trending up since the Q4 earnings report.
PLMO is in a hot sector with the likes of RIMM. As people want more out of their cell phones they will convert to palmOne.
SpeculatingStocks.com Target Price: It looks as if PLMO shares will continue to trend higher and go over $55 in the next 6-12 months.