Defensive trading ahead of earnings. Palm (PALM) is due to report earnings this afternoon. Shares sit unchanged at $4.55, but trading in the options market, where volume is running five times normal, is a bit more cautious. 4,852 puts have traded, 4,108 calls, and sentiment is decidedly (77 percent) bearish. The 13 analysts who cover the stock expect PALM to post a quarterly loss between 10 and 16 cents. Consensus is a 14 cent loss. The stock is down 23.3 percent since the last earnings report when the company explained that, delays on the release of Treo 755p was the primary reason for missing on revenues.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.