Mobile smart phone maker, Palm (NASDAQ: PALM) is the latest trading idea from Mark Skousen. Here's the latest from his premium advisory, The Hedge Fund Trader Alert.

"My latest recommendation is in the tech sector, which appears to be rebounding sharply.

"Palm Inc., a maker of mobile smart phones for professionals, businesses and consumers, may be on its way back to matching the performance of its chief competitors, RIMM’s Blackberry and Apple’s iPhone.
 
"In the past few years, Palm has suffered serious losses and a sharp decline in revenues. The stock is down 90% from its heyday during the dot-com boom.
 
"But now analysts have raised expectations. Its 'Centro' phone offers mobile email and Web browsing at the lowest price point in the market, making high-end performance accessible to a broader, younger market. 

"And its Palm 'Pre' is the first phone built on its groundbreaking Palm webOS platform. In short, Palm is expected to turn the corner and resume operating in the black early next year.
 
"There’s more good news. Insiders are buying heavily. Last month, Directors Roger McNamee and Fred Anderson (a former Apple executive) made the two biggest insider purchases in the country, each buying approximately 2.2 million shares at $16.25, an investment of more than $35 million apiece.
 
"The two men also are co-founders of Elevation Partners, a private equity firm associated with Bono, the lead singer of U2. Elevation is a beneficial owner of Palm. 

"The private equity firm owns more than 10% of the outstanding shares and it also invested $35 million in the stock last month.

"These insider purchases make a compelling case that Palm is undervalued and the good news is coming a lot sooner than the market expects."