Palm and TRC Companies on the rise but is there a Selloff coming?
Fed Fund Futures Could Be Setting Market Up for a September Sell-Off from Chad Brand I think saying there is a 100% chance of a cut this month is overly optimistic for
interest rate bulls. And a 72% chance of a 50 basis point cut is even more aggressive. Right now,
I'd put the odds of a cut of any magnitude between 50% and 75% based on what Bernanke has said and done so far.
......
Just be aware that the risk-reward trade off right now in the short term doesn't appear all that favorable as long as you assume two things. One, the fed fund futures market accurately gauges what the market is currently pricing into prices. And two, the market will be reacting to interest rate speculation and action in coming weeks.
Read the entire article at Peridot C.
Time to look at Palm (NASDAQ:PALM)
by NotableCalls
Reasons to buy Palm (NASDAQ:PALM), the stock is up almost 6% since last Thursday:
- PALM's a $15 stock that's about to announce a $9 dividend in the coming months (provided the Elevation Partners deal is approved in a week).
- There's almost a 25% short interest meaning it has most certainly become a crowded short. PALM is lagging the overall smartphone market but that's hardly news.
- Provided the EP deal is approved, Jon Rubinstein, Apple's retired head of hardware joins Palm as executive chairman to head up product development while Apple's former CFO Fred Anderson joins Palm's board of directors. New products won't show up for about another year or so (and will not reach the market for 18 months) but when they do..there's a strong chance they will be interesting.
- The iPhone is likely eating Palm's lunch right now but I just don't see much downside from here.
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