"Despite being enamored with Palm’s (PALM) Pre smartphone, analyst Kevin Dede with boutique investment banker and brokerage Jesup & Lamont this morning initiated coverage of Palm shares with a 'Sell' rating. Dede thinks the shares are worth $12.50.
Dede thinks Palm’s August-ending Q1 will reflect a high cost for returned units of the Pre owing to manufacturing defects. Dede bases his analysis on a survey of Pre buyers at an enthusiast Web site, www.precentral.com. According to that survey, he concludes, 40% of initial Pre sales are returned."
