Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, smartphone maker Palm (NASDAQ:PALM) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Palm's business and see what CAPS investors are saying about the stock right now.

Palm facts

Headquarters (Founded)

Sunnyvale, Calif. (1992)

Market Cap

$1.9 billion


Communications equipment

Trailing-12-Month Revenue

$437 million


CEO Jonathan Rubinstein (since June 2009)

CFO Douglas Jeffries (since January 2009)

Return on Capital (TTM)


1-Year Return



$212 million / $393 million



Research In Motion (NASDAQ:RIMM)

Nokia (NYSE:NOK)

CAPS Members Bearish on PALM Also Bearish on (NASDAQ:OSTK)

CAPS Members Bullish on PALM Also Bullish on


Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS. TTM = trailing 12 months.

On CAPS, 56% of the 1,480 members who have rated Palm believe the stock will underperform the S&P 500 going forward. These bears include fundamentalsrock and A6EIntruder.

Just last month, fundamentalsrock strongly advised Fools to wave goodbye to Palm:

Palm is a classic example of too little, too late. Its webOS is great. But so is Android, iPhone OS, Windows Mobile and even [Research In Motion's] OS. WebOS has some advantages (multitasking for example) but that isn't going to be enough to convince a critical mass of people to (a) buy into a new OS thereby abandoning whatever OS they have been using, and (b) buy into a failing wireless data operator [Sprint (NYSE:S)].

In a pitch from one month earlier, A6EIntruder offered bulls more reasons to have sweaty palms:

The Android market is gearing up and ready to put Palm in even more dire straits. Make no mistake: Android is going to be the Windows of the smart phone market. ... Android is a free, open-source alternative which will revolutionise the smartphone market.

Making Sprint the launch partner for Pre, given all this, seems like a suicide pact: a former pack leader now reduced to marketing through the sickliest of the major NA carriers.

Palm hires great designers and great programmers. Let's hope that management can capitalise on their proven track record and turn things around, but for now, as the saying goes, this dog won't hunt.

What do you think about Palm, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor pick, Google is a recommendation of Rule Breakers, and Sprint and Nokia are Inside Value choices. The Fool's disclosure policy always gets a perfect score.