As you may have heard, Palm has launched a new phone. The launch has Wall Street in a frenzied state of excitation, a state of such frenzy that Palm (NASDAQ: PALM) has “doubled in size” in the last two days. I think we’ve all been excited by “new palms” before. But this one is special, it’s the first phone to actually be named after the baby-making fluid which biologically signifies you are really sloppily excited about something.
Recommendation: In our experience the presence of ‘pre’ usually means you are too excited/optimistic about whatever you think is going to happen. In layman’s terms, it means you messed up, usually literally, before you even got down to your business. We stick to our long term fundamental thesis of Sell the foreplay (which usually disappoints), and Buy the afterglow. Here is a video of the pre in action.