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Palm: Don't Short Before Earnings, Deutsche Bank Warns

Published on June 24, 2008
by Eric Savitz

Deutsche Bank’s Jonathan Goldberg advises against holding a short position in Palm (PALM) heading into the company’s earnings report and conference call after the close on Thursday. Goldberg is no bull on the stock; he maintains a Sell rating on the shares and a $4 price target. But he also notes that 38% of the shares are sold short, while 10 holders account for almost 70% of the shares outstanding. Goldberg notes that “in recent weeks, even minor positive news reports have sparked outsize increases for PALM stock.”

Goldberg write in a research note that the company should print “strong unit numbers with weak profitability levels, similar to their results all year,” but contends that outcome is already in the stock.

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