Silicon Alley Insider has an interesting take on Palm (NASDAQ: PALM) The company has a market cap of $573 million.
As of the last earnings report,, the company had $369 million in cash and $259 million in short-term investments. (A reader has correctly pointed out that Palm had a special dividend of $9 after the Q was filed and the company took on $400 million in debt)
Although the news is deeply insulting to Palm's board and management, it may make the company an excellent investment.
Palm runs close to breakeven. In the last quarter, it last $841,000 on $361 million in revenue. The company has brought in the former CFO of Apple (NASDAQ: AAPL), along with one of the executives who helped create the iPod.
With the company's balance sheet and market value being so close together, where is the risk in Palm? The answer is that there probably isn't much.
The ratio also makes the company a better talkover target. The net cost to buy the company is next to nothing.
Douglas A. McIntyre is an editor at 247wallst.com.