Palm Inc. (NASDAQ: PALM) is trading higher on those pesky takeover rumors all over again. Some say Nokia Corp. (NYSE: NOK) and some say Dell Inc. (NASDAQ: DELL) is a possible suitor. Frankly, both have long been buyers of the company IF you listen to the rumor mill. We question the rumor though not just because this is probably the 20th such rumor on this. We have only seen 4.5 million shares trade hands at 10:15 AM EST and the shares are up almost 4% at $11.89.  We would note that there have been approximately 15,000 contracts that have traded hands at the same time in the NOV-2009 CALLS and there is some activity out in the JAN-2010 CALLS.
If a deal were to come, it seems that anything under a $15.00 share price would be laughed at and denied by holders in a vote. It might even take $20.00. The lows of $1.14 over the last year won’t be very relevant, but everyone under the sun will point to the $18.09 high.
As with all rumors, caveat emptor.
JON C. OGG
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