The company had a terrible balance sheet and prospects. So why would people pay 14 dollars a share for a junk company. I never understood this palm situation
because it was going up. momentum investing is like a game of musical chairs. when the music stops someone is the bagholder.
Probably why people are still buying BIDU, which has a price-to-sales ratio of 26 yet keeps going up 4% a week.
I bet good $ that if you asked that question 10 times, 5 of them would be doubled or more by now. So unless you routinely pick stocks that crater, its a meaningless question.
Shorting is not rocket science though. You just need to find companies that have a history of poor management, ugly balance sheet and cash flow situation, debt and selling at premiums that absolutely make no sense. Anyone who paid 14 or more is an absolute chump.
yes, there are many short sellers that have made billions. they can all be found down at the 5th Ave coffee shop. drinking watered down liptons tea Where are all the shorts that said we would be back at 666 by now? Tice=Turd
The Motorola Droid is what killed it. Verizon lacked a name smartphone when it was trading at $14 and I'm pretty sure the Palm longs figured it would be filled by the Pre. If Palm had managed to launch their phones on Verizon 2-3 months before Droid launched they'd probably be worth more than $14. Instead they launched 2 months after Droid and they are probably worth $0.