"This whole decline is on no news"

Actually I don't think the decline is primarily about news. Rather it is about supply and demand. Whenever you have a stock with such a high percentage of institutional ownership, a quick decline is possible is when someone gets disenchanted, other funds often wait for lower prices. Still there actually was some news. The first piece relates to all of the favorable publicity concerning the Droid release at Verizon. Its likely that one or two fund managers got cold feet thinking about how mighty Google would cause Droid to become the Iphone's number one competitor and little Palm was at risk of fading away.

Here is a post I actually found in the middle of a football forum comparing the Sprint Hero with the Pre. "To be honest - I like the Pre as a phone, but I don't think the OS has as much potential as a platform as Android. Not as many apps available for Pre as Android at the moment, and with more carriers and manufacturers making Android phones (and increasing by the day), I think the development potential is greater with the Hero." Betting on Goliath over David is something that almost everyone does. (When in doubt go with the company with scale is the philosophy.) Wonder how tiny Compaq and Dell won the PC wars against the likes of IBM?

The second piece of news had to do with supposedly disappointing sales of the Pre in Europe. It is not clear whether disappointing was measured by Apples previous European release, and also Palm's prior product releases in Europe would lead a sane person to anticipate that it would take a while to build demand for the Palm Pre in Europe and also Palm is unlikely to have expected high initial sales numbers for the Pre.

When people buy a smartphone it is based on the price, and how it looks, and what it does, not based as much on "development potential". If Palm executes well there will be room for the smartphones that they sell in the huge cellphone market. Sales go up when Verizon and AT&T start selling the Pre and Pixi next year. Palm will sell some Pres in Europe and Canada, and other international countries. Palm's earnings postential will improve significantly in the next 6 months period and the stock is very likely to go up to reflect Palm's additional earnings power.