As HP's acquisition, PALM's stock will be risen to $ 6

Recently it was announced that HP will be acquiring Palm for a cool $1.2 billion. Palm has a slew of operating systems that operate on PDAs to smartphones. The most prized jewel in Palm’s arsenal has been touted as the company’s WebOS platform.

Can HP turn the Pre and Pixi into something more than a crumb-eater against Research in Motion and Apple and Microsoft?

Now it also has deep pockets. Last week Palm was bought in a $1.2billion (£790m) deal by Hewlett-Packard, the technology giant, to lead its own charge into the smartphone arena.

Analysts at JP Morgan said: “We think HP is pursuing the proposed Palm acquisition as an economical back door into the smartphone market.”