This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Five Dumbest Things on Wall Street: July 31

Palm Loses Grip

Palm (PALM) successfully scaled the wall of worry. Now it needs to get a grip on reality.

The newly resuscitated smartphone maker, whose shares are up nearly 400% this year, was shocked to learn that Best Buy (BBY), the last real electronics retailer standing, spent last weekend practically giving away the Palm Pre, the company's last hope for survival. The Palm Pre generally retails for $199, but more than a few customers were treated to new ones for $99 after a slip-up in Best Buy's computer system.

The confusion started when a picture of an in-store banner promoting a week-long special of a $99 Pre with a two-year contract was mistakenly posted online. A Best Buy marketing manager tried to fix the problem by announcing the error on his Twitter page, but by then it was too late. Somehow the half-price deal was programmed into vendor systems and -- faster than you can say "blown profit margin" -- stores nationwide began selling the phone at the lower price.

And that wasn't the only bizarre behavior affecting Palm last week. It also had to deal with Bono gone bonkers.

As reported in the New York Post a week ago, U2 front man Bono has been out pitching for Palm's archrival Research In Motion (RIMM) in commercials for its BlackBerry smartphones. The TV spots for BlackBerry are linked to the release of U2's latest album, No Line on the Horizon.

Bono could sing the praises of BlackBerry all he wants if not for one major problem: He's a major investor in Palm through the private-equity firm Elevation Partners. And as the Post points out, Bono's conflicted role could create a wave of lawsuits by other Palm investors who have bet big on the Pre.

Not to mention its one-product parent.

Dumb-o-meter score: 90 -- You too can get a half-priced Pre at Best Buy! And so can U2.

Stock quotes in this article: ERTS, PALM, YHOO 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,441.51 +16.66 0.10%
S&P 500 1,864.56 +2.25 0.12%
NASDAQ 4,095.1080 +8.8830 0.22%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs