Is there a little less hand-holding in store for the handheld sector? While industry pioneer and fledgling penny stock Palm
Fighting two years of unfulfilled hype, botched rollouts, and inventory overloads, Palm and rival Handspring
Even Research in Motion
On the Palm front, new products and an enhanced operating system are on the way. And while sales fell short in the company's first fiscal quarter, Palm was able to grow its top line back in August. Sure, most of that came courtesy of dramatic markdowns, as the company continued to shovel out its dated inventory, but at least the units are moving and penetrating the marketplace.
The risks here are as huge as the handhelds are small. Until the sector gets back into the black, it's a gamble. Still, keep an eye on how holiday sales shape up. A lot is riding on Palm's newest wares, and the company is expecting to break even this quarter. It's do or die time for the fallen darling.