PalmOne stock is prone to big swings based on news available at the moment. Just a few months back it was trading at over $33, now it's at $26. And unlike old bellwhethers, the p/e ratio doesn't mean much, one bad release and the company's toast. Remember, PalmOne does not have unlimited cash like Microsoft who can go three tries (IE, PPC) before succeeding.
Currently, the Treo line is hot, but what products lies ahead, that's what matters and that's will determine if the current price is cheap. Remember the m505 fiasco that almost sink the company, that's a reminder that PalmOne is only as good as its next release. PalmOne is a one-product company, so if smartphones (or PDA) loses its appeal, the company has little else to fall back on...unlike companies such as Nokia, Siemens, Sony, or HP.
Disclaimer: This is a layman's assessment and does not own any stock in any of the companies mentioned. I am not liable for any losses that any investor may incur as a result of reading this post.
Read too much financial reports (apparently)...