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  1.    #1  
    So as the title say what happens to the Palm stock???? any experts here who can answer this question???
  2. #2  
    It apears that when the deal closes in july your stock will be sold automatically at 5.70. Even if the stock hits 100.00 you are still only getting 5.70 in July whatever if you still own it. I would expect the stock to fluctuate at 5.70 ish for the remainder of it's existence. Silly me. I just bought some with out really understanding this all. Looks like I'm gonna try to sell it quick and break even during a peak.
  3.    #3  
    Quote Originally Posted by kill_Dano View Post
    It apears that when the deal closes in july your stock will be sold automatically at 5.70. Even if the stock hits 100.00 you are still only getting 5.70 in July whatever if you still own it. I would expect the stock to fluctuate at 5.70 ish for the remainder of it's existence. Silly me. I just bought some with out really understanding this all. Looks like I'm gonna try to sell it quick and break even during a peak.
    In the same boat...will try to sell 1st thing 2morrow morning.
  4. #4  
    Last January, I began to suspect Palm would be sold sometime this year based on Elevation Partners' previous track record with non-performing companies. Usually when a tanking company starts being courted by potential buyers, the stock spikes a little bit so I was pretty serious about dropping a chunk of speculative change on Palm in anticipation of this leap. But nothing's happened. It's like nobody cares that Palm is going away so that HP just got to swoop in and buy 'em up for a song. Ouch!
  5. bruba's Avatar
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    #5  
    Quote Originally Posted by darkzone View Post
    So as the title say what happens to the Palm stock???? any experts here who can answer this question???
    It goes up 27% in the after hours.

    PALM: Summary for Palm, Inc.- Yahoo! Finance
  6. Xacto01's Avatar
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    #6  
    Quote Originally Posted by kill_Dano View Post
    It apears that when the deal closes in july your stock will be sold automatically at 5.70. Even if the stock hits 100.00 you are still only getting 5.70 in July whatever if you still own it. I would expect the stock to fluctuate at 5.70 ish for the remainder of it's existence. Silly me. I just bought some with out really understanding this all. Looks like I'm gonna try to sell it quick and break even during a peak.
    So it looks like i'm only gettin about $103.95 bucks after I bought 195 shares at 5.11 right?
    x/(996.45-9.95) = 5.70/5.11
    5.11x = 5623.05
    x = 1100.40

    new 1100.40 - original 996.45 = $103.95 (commision of 9.95 already taken out)


    Is this math correct?
    Will sharebuilder automatically withdraw the funds into my money market account?
    Last edited by Xacto01; 04/28/2010 at 06:12 PM.
  7. #7  
    Quote Originally Posted by kill_Dano View Post
    It apears that when the deal closes in july your stock will be sold automatically at 5.70. Even if the stock hits 100.00 you are still only getting 5.70 in July whatever if you still own it. I would expect the stock to fluctuate at 5.70 ish for the remainder of it's existence. Silly me. I just bought some with out really understanding this all. Looks like I'm gonna try to sell it quick and break even during a peak.
    Could be a bit more complicated than that. The 5.70/share price has to be accepted by a majority of PALM shareholders before the deal goes through. I haven't done the homework so it may be that the major investors in PALM already have enough controlling shares to make the deal happen and 5.70 is a solid price. But, in many acquisitions, the final purchase price is different from the initially published offer - usually it is higher.

    My bet is that the final deal will go through very near 5.70, but there is always some small chance it could go higher and very little chance it will go lower. I wouldn't rush to sell tomorrow unless you have some better place to put that money right now.
  8. Xacto01's Avatar
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    #8  
    Why would anybody want to sell if they bought their shares at lower than 5.7? I'm naive when it comes to stock market stuff.
  9. #9  
    Whats more confusing are options.. This one I am actually not 100% sure on..

    Say you own Aug 8 Call options on Palm... the stock is now being bought out at 5.70 in a deal that is supposed to close 7-31. So the $8 aug call options will be priced how? Is it best to try to insta-sell at market in the am? Or just hold out for some sort of miracle?
    Last edited by abbodabbodo; 04/28/2010 at 06:40 PM.
  10. Xacto01's Avatar
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    #10  
    If HP is going to sell the stock at 5.7, then why are after hours prices going up to 5.85?
  11. #11  
    Quote Originally Posted by darkzone View Post
    So as the title say what happens to the Palm stock???? any experts here who can answer this question???
    The way these things work is this:

    HP and Palm have been talking for some time now
    HP and Palm will begin talking to their stock holders
    the stock holders will sell their shares back to Palm for $5.70 (maybe a little higher, maybe a bit lower) and Palm will sell it ALL as a WHOLE to HP
    You will get the money from a holding company or some sort of a company that specializes in this stuff


    If HP is nice in their deal, they might include a provision to include cash bonuses if Palm goes above expectations (1, 2, and 3 years from now), possibly doubling your sale price (if they do this, I doubt they would give a bonus in excess of $0.50 a share).
    Arthur Thornton

    Former webOS DevRel Engineer at Palm, HP, and LG
    Former webOS app developer (built Voice Memos, Sparrow, and several homebrew apps and patches)
    Former blogger for webOS Nation and webOS Roundup
  12. #12  
    What about my options question? I am thinking try to dump at market open?
  13. #13  
    I know the discussion here is Palm stock, but whatndoes everyone think about buying a ton of HP stock right now?

    I purchased 5K in palm stock at 5.50 per share. I'm just happy I won't be losing any money on this. So it sounds like the current advice from the stock experts here (not myself) is to hang on to your palm stock as long as u paid less than 5.70 per share...

    Experts... To those of us holding our palm stock, will we be contacted sometime in July or something when this whole thing goes down?
  14. #14  
    Without doing a ton of digging into the legalese of an options contract, I will say that first, an options contract does not actually involve the firm on whose stock the contract is written and that the writer (seller) may not actually hold the stock in question. A call option is simply a promise (legally enforceable) by the seller to the buyer to provide some number of shares at a specified price if the buyer exercises the option. Now, in an extreme situation like this, it appears options are either adjusted to allow for delivery of the acquiring firm (in stock for stock mergers), or cash equivalent to what the underlying number of shares would have brought. Although, in the latter case, my understanding is trading will stop when the deal is finalized trading on said options will cease.

    Gargoyle
  15. #15  
    good question.... HP @ $53.00 is this a buy?
  16. #16  
    You better be careful about buying HP stock in the short term. Usually the stock of the company making the acquisition drops when a buyout is announced.
  17. #17  
    I think the market didnt "get" the acquisition so hp was getting the beat down. However that could be a longer term buying op... not advising of course.
  18. #18  
    They are such a huge company to begin with.. can't see it "doubling" in the short term because of webOS... but you never know.. look at Apple... becuase of the iPhone the laptop sales have gone UP considerably!! now...... if HP can take an Ubuntu and make the phone 'compatible' with it for the 'masses'.... well then... maybe we have apple again lol nevermind. Apple is @ $261 now with billions in profits....
  19. #19  
    Quote Originally Posted by abbodabbodo View Post
    What about my options question? I am thinking try to dump at market open?
    abbo - there's likely to be a crowd of inexperienced options buyers trying to dump in the morning. You can jump in with the crowd and take your losses along with the rest of them - just don't expect that you will be getting your trades executed ahead of any of them.

    My rule is never trade in the first 30 minutes of the day. Besides, with some PALM stock owners already filing suits opposing the acquisition, there is likely to be some volatility in PALM stock price over the next few weeks as this whole deal settles into a final agreement. You may have an opportunity to exit your position without too much pain if you can be patient and keep an eye on the market. Worst case, you'll get out with no more of a loss then than you are already looking at now.
  20. #20  
    So youre saying to roll the dice maybe bc Im gonna get hosed on the call option anyway basically? I have never been through a situation like this with options out of the $.
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