Palm stock continues to climb, all thanks to the Rumor Mill

Two days ago, something crazy happened: after spiraling downward for almost a year, Palm’s stock finally started to climb thanks to a rumor that Lenovo was considering snatching the injured company up. We expected things to level off pretty quickly — and they did, at a growth of right around 20% with a going price of about $4.60 per share.

Today, even more fuel has been thrown on to the fire.

Early this morning, a Chinese economics/investing site threw another name into the mix of possible suitors: HTC. Given HTC’s many recent successes, that was bound to get the investors excited – and it did. Jump forward to right this second, and Palm’s sitting at right around $5.20, or a 33% increase over what they were at before the climb began.

They’re still nowhere near the $17.39 peak they were at earlier this year, but they’re inching closer and closer to the $6.14 mark they were at before they started warning people that their Q3 results weren’t going to be too hot.

What do you think: did the rumor mill light a long lasting fire beneath the butts of Palm investors, or is this just a temporary spike?

Palm’s Stock Ticker on Google Finance