Why Is PALM Moving Up?

After Hewlett-Packard (NASDAQ: HPQ) announced a takeover of 3com (NASDAQ: COMS), investors started to speculate who could be next.

JJ Kinahan of TD Ameritrade is watching options activity on PALM and he said on CNBC's Fast Money that investors appear to see Pixie release as a trigger for a takeover deal.

Jim Iuorio of TJM thinks it is odd that Palm Inc. (PALM) is up on a day when Dell, Inc. (NASDAQ: DELL) announced that it is entering smart phone market.

Steve Grasso is of an opinion that PALM is a heavily shorted stock and that today's rally could be a combination of a short squeeze and investor speculation.