PALM shares close above $13 on June 19?

Palm's stock has risen sharply since the beginning of the year, from under $4 to its current level of around $10. A big reason for the rise: Excitement over the Palm Pre, which was demonstrated at CES in January and is slated to be released on June 6. In fact, just before the sale date was announced, PALM closed at $12.06, a 52-week high.

Palm has been through a long drought as its PDA business has faltered, its operating system technology has grown long in the tooth, and the once-popular Treo smartphones have become dated. In addition, the Palm Pre will be going up against some tough competition -- including Apple's strong iPhone, a resurgent BlackBerry family, and up-and-coming Android phones. 

But early testers and observers think the Palm Pre and its features could be a hit and turn around the fortunes of the company. The world will get some early indications of this by June 19, nearly two weeks after it goes on sale. By that time, investors in PALM will have a chance to gauge the Palm Pre's early success, in terms of reaction from consumers and whether claims of anticipated shortages pan out.

Prediction: PALM will close above $13 on June 19. If the stock closes at or above that level before June 19, that will not impact the judgment of this prediction.