When Palm Does a Deal, Prices Get Crazy

When Palm Does a Deal, Prices Get Crazy "When Palm agreed to rescue Handspring on Wednesday, the deal amounted to a takeunder, in which Palm offered stock worth less than Handspring was trading for. But Wall Street did not seem to notice, and Handspring traded that day for more than the value of the stock its shareholders will receive.
But in many ways, this market feels like a restrained version of the happy days before the bubble burst. Palm stock rose 31 percent over the two days after the deal was announced. Investors might have been slow in understanding how the deal would work, but they wasted no time in focusing on the possibilities of growth that came from reuniting Palm with its founders."

I am seeing many symptoms of localized "irrational exuberance" these days -- very disconcerting when I ponder the ramifications of the last such wave...