Wednesday, March 31, 2010

RIMM & Palm Why Catch a Falling Knife?

Will Research In Motion (RIMM) take over Palm (PALM) RIMM has a very strong sense of what their market is primarily about. Business. Apple and iPhone has been around long enough and RIMM is still ruling the crackberry nation. RIMM is run by some very strong willed individuals who will want to know why they need to pay a premium for a failing enterprise.

Microsoft did not buy Yahoo because the price was too high. They did make some strategic alliances which Microsoft wanted and Yahoo needed. Look for RIMM to do the same with Palm. Palm’s current market cap is under $900 million before take over premium. Would RIMM pay cash to catch a falling knife called Palm? Why dilute your shares to catch a falling knife called Palm.