“It’s raining money at Palm, as the decision to move Ed Colligan out of the CEO’s job apparently has unlocked even more shareholder value, to the tune of another 8 percent [on Friday], on top of a big percentage gain a day earlier. About $11.50 at the beginning of the week, and comfortably north of $14 this morning,” Jim Goldman writes for CNBC.
“You can thank the one-two punch of Colligan’s ouster and fresh rumors of a Dell buy-out for this rally. Which is normally a red flag for me as ‘action away from the ball’ rather than the game itself,” Goldman writes.
“Takeover rumors responsible for the lion’s share of a stock’s move is a shareholder’s version of playing with financial fire. Just as beleaguered and bewildered investors in Yahoo still pining for a deal with Microsoft,” Goldman writes.
“The real issue for Palm, and [new CEO] Jon Rubinstein, and the company’s legions of investors who are strapped in for this rocketship ride, is whether its surging stock is more a case of irrational exuberance,” Goldman writes.
Full article here.