Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, April 30, 2010

Article Excerpt

HEWLETT-PACKARD CO., $51.97, New York symbol HPQ, is buying smartphone-maker Palm Inc. (Nasdaq symbol PALM) for $1.2 billion. About $1 billion of the purchase price will be in cash; the remaining $200 million consists of Palm’s debt. Hewlett holds cash of $13.6 billion, or $5.79 a share, so it can easily afford this purchase. The deal should close by July 31, 2010. Palm sells mobile-computing and communication devices to consumers and businesses worldwide. The company has one main product line: smartphones, which it sells under the Treo, Centro, Pre and Pixi brands. The Pre and Pixi smartphones use the webOS operating system. Palm will strengthen Hewlett’s own line of wireless devices. It should also help Hewlett compete as more people access the Internet through mobile devices instead of desktop and laptop computers. As well, Palm’s software expertise will help Hewlett develop new products. For example, Hewlett is working on a touch-screen tablet computer that would compete with Apple’s iPad. Palm is trading…