As a major validation of the importance of smartphones, HP (HPQ) agreed to shell out $1.2 billion for Palm (PALM) this week. The truth is that consumers and businesses are increasingly using mobile devices. In fact, the market for smartphones is $100 billion and growing at more than 20% per year.

OK, so how can you use a smartphone to help your business? Actually, one idea is to turn it into a point-of-sale system, which is actually fairly straightforward and affordable.

Analyst Upgrades

• Kaufman Bros. upgraded Palm (PALM) to hold from sell after the company was acquired by Hewlett-Packard (HPQ).
• Citigroup upgraded Akamai (AKAM) to buy from hold following the company's better-than-expected Q1 results. The firm raised its target for shares to $44 from $32.
• Deutsche Bank upgraded Rockwell Automation (ROK) to hold from sell following the company's Q2 results and guidance. The firm raised its target for shares to $60 from $49.
• First Solar (FSLR) was upgraded to buy from hold at Deutsche Bank and to hold from sell at Soleil.
• Beckman Coulter (BEC) was upgraded to overweight from neutral at Piper Jaffray.
• Barrick Gold (ABX) was upgraded to buy from hold at Jefferies.

Analyst Upgrades

• JPMorgan upgraded T. Rowe Price (TROW) to overweight from neutral while downgrading Janus Capital (JNS) to underweight from neutral to reflect valuations and fundamentals. The firm has a $67 price target for T. Rowe Price shares.
• Piper Jaffray upgraded Lincoln Electric (LECO) to overweight from neutral as it believes the rebound in global manufacturing is accelerating. The firm has a $70 price target on the stock.
• Wells Fargo upgraded Highwoods Properties (HIW) to market perform from underperform, citing valuation and a strong balance sheet.
• Corning (GLW) was upgraded to outperform from sector perform at RBC Capital.
• Allergan (AGN) was upgraded to conviction buy from neutral at Goldman.
• Mohawk (MHK) was upgraded to buy from neutral at SunTrust.

There's been a lot of chatter lately about a potential buyout for Palm Inc. (PALM), with various reports pointing to HTC and Lenovo as possible suitors for the parent of the Pre and Pixi smartphones. However, one long-term option trader on Monday placed a confident bet against a white-knight bid for PALM by opening a sizable, out-of-the-money put position on the equity.

Around midday Monday, a block of 6,500 contracts slipped across the tape on PALM's January 2011 2.50 put, which is currently out of the money by about three points. These puts changed hands at the ask price of $0.25, suggesting they were purchased.

Google (GOOG) and its Android operating system is giving Apple (AAPL) and its iconic iPhone a serious run for the money right now. Nearly twice as many consumers are using Android-based phones now compared with three months ago, according to a recent survey by ChangeWave Research.

That's no fun for Apple, of course, but survey results show that the tech giant is still holding its own with high customer satisfaction and a larger share of the market. AAPL isn't going down anytime soon -- but the real threat lies to BlackBerry maker Research in Motion (RIMM) that saw market of its smart phones share dip sharply in the survey and is seeing waning demand for its devices.

Analyst Upgrades

• Apollo Group (APOL) was upgraded to sector perform from underperform at RBC Capital. The firm has a $75 target on the stock.
• JPMorgan raised Westlake Chemical (WLK) to overweight from neutral.
• Morgans Hotel (MHGC) was upgraded to outperform from market perform at JMP Securities.

Analyst Upgrades

• Leerink upgraded Genzyme (GENZ) to outperform from market perform due to valuation as it believes the sell-off on news of the consent decree is overdone.
• FBR Capital upgraded Progressive (PGR) to outperform from market perform to reflect an improving outlook. The firm raised its target price for shares to $23 from $18.
• Janney Montgomery upgraded Cheesecake Factory (CAKE) two notches to buy from sell, citing improving casual-dining sales trends. The firm has a $30 price target for shares.
• Research in Motion (RIMM) was raised to overweight from neutral at JPMorgan.
• Tata Motors (TTM) was upgraded to buy from hold at Deutsche Bank.
• Palm (PALM) was upgraded to market perform from underperform at BMO Capital.

After reading this breakdown of Palm's (PALM) lethal combination of mistakes in the last year, one would wonder where the company is headed (except into the ground). Without following some sound advice from non-CEOs, the company -- which at one point was the premier smartphone company -- may be headed to shutterville faster than 2012. If the company is even worth anything by then, nobody will want to acquire it and investors in it will lose everything. That is, unless a product launch on AT&T (T) can save the company.

Would anyone care if Palm (PALM) went away -- other than its employees and shareholders?

This company is seeing sales decline, and its new best hope, the Pre, is competing against the iPhone, BlackBerry and Droid.

That means a company with little cash and a market cap under a billion dollars is fighting, with an inferior and overpriced product, against the combined strength of Apple (AAPL), Research In Motion (RIMM) and Google (GOOG). End of discussion.

At the time of this writing, the author did not own shares of PALM.

Next: Deadbeat Stock #3: Brunswick (BC)

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Alcatel-Lucent (ALU) received an analyst's downgrade following its disappointing earnings report and guidance.
• Chicago Bridge & Iron Co. (CBI) improved earnings prospects prompted one analyst to upgrade the stock.
• Cintas Corp. (CTAS) lower Q3 earnings topped analysts' expectations, and it reiterated its Q4 earnings guidance.
• CRA International Inc. (CRAI) received an analyst's downgrade following its earnings results for Q1.
• Discover Financial Services (DFS) reported a net loss for Q1 due to a needed boost to its loan loss reserves.

Spring is finally here, which means it's time to break out the broom and dustpan for some spring cleaning.

But your home isn't the only thing that requires constant maintenance -- your portfolio does too.

And what better time than spring to get a fresh start by cleaning out the stocks that are sitting around collecting dust rather than making you money?

Analyst Upgrades

• Auriga upgraded Computer Programs & Systems (CPSI) to hold from sell after channel checks indicated Q1 could be the bottom for stagnation of new system sales. The firm raised its target for shares to $38 from $32.
• Janney Montgomery upgraded Tetra Tech (TTEK) to buy from neutral due to valuation. The firm has a $26 price target on the stock.
• Deutsche Bank upgraded Energy Transfer Equity (ETE) to buy from hold and raised its target for shares to $40 from $27.
• Best Buy (BBY) was upgraded to buy from neutral at Goldman.
• Mariott (MAR) was raised to buy from sell at Societe Generale.
• Telus (TU) was upgraded at TD Newcrest to action list buy from buy.

Palm (PALM) got hit in yesterday's after-hours session after announcing its third-quarter earnings report to Wall Street. According to BusinessWeek, an adjusted loss of 61 cents per diluted share was recorded on the bottom line. Analysts thought the loss wouldn't be so severe; they projected red ink of 42 cents per share.

Shares of Palm were down over 15% in extended trading. That's enough to scare any shareholder into rethinking the investment thesis with this business.