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VIDEOTicker Shock: Four Reasons to Keep Palm in Your Hand
Thursday's top stories and stocks with potential to move.
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Asian stocks were stuck in neutral. The Hang Seng was up, but only 0.03%, and the Nikkei was down 0.1%. Meanwhile, European stocks were in positive territory early this morning. And here in the US, we're currently trading higher.
Here's what I’m focused on this fine, but overcast Thursday:
Palm (PALM):
It looks like the California-based smartphone maker is getting a new pilot in Jon Rubinstein. Click here for the skinny on him.I’m getting some positive vibes from this:
1. Rubinstein is a former Apple (AAPL) guy with a good reputation (having been linked to the success of the iPod and iMac). He's also not a Palm outsider; he’s been executive chairman since ’07. The man's been around the block, and gives the impression he knows his stuff.
2. My hope is that, in addition to being a savvy guy in the tech world, he’ll also be good at communicating with the Street. This will be necessary if he wants to reel in new investors. (I’ve been a bit skeptical when it comes to bellying up to Palm because of the red ink the company's expected to kick out this year and next.)
3. To its credit, the stock has had a smart (get it?) comeback from its lows, and is now trading somewhat near its 52-week high. I certainly can’t guarantee the ball will keep rolling. However, if it does manage to make a new high, that could draw a lot of attention and the shares could bolt to the upper teens. 4. To Mr. Rubinstein: A nice insider purchase would really send an upbeat message right about now.
Stay tuned.
Caterpillar (CAT):
Yesterday, the board of the company that makes machines every young boy (and middle-aged man) would kill to operate (Mr. Owens -- that's my request for a test-drive), maintained its dividend. In and of itself, that's hardly blockbuster news. But it got me thinking a bit about the merits of bellying up to the stock:
1. There was a nice insider purchase of 2,000 shares in May -- at a higher price. There was also a nice little flurry in the low $30s earlier in the year.
2. The forward yield is almost 4.5%. Sweet Ginger Brown, that’s nice. 3. If you're a believer in green shoots and comebacks, doesn’t that suggest Caterpillar could come along for the ride?
4. I’m thinking long-haul on the stock. I’m tuned into the fact that earnings estimates for 2009 and 2010 have actually come down over the last 30 days.
A previous mention of Caterpillar can be found in my article, Ticker Shock: Five Companies You're Ignoring at Your Own Risk.
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