UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  SCHEDULE 13G

                   Under the Securities Exchange Act of 1934

                               (Amendment No. 2)

                                   Palm, Inc.
- --------------------------------------------------------------------------------
                                (Name of Issuer)

                                  Common Stock
- --------------------------------------------------------------------------------
                         (Title of Class of Securities)

                                   696643105
- --------------------------------------------------------------------------------
                                 (CUSIP Number)

                                  May 23, 2006
- --------------------------------------------------------------------------------
            (Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:

[ ]  Rule 13d-1(b)

[X]  Rule 13d-1(c)

[ ]  Rule 13d-1(d)

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).


CUSIP NO. 696643105

1.  Names of Reporting Person.
    I.R.S. Identification Nos. of above person (entities only).

    Sagio Investments SA
- --------------------------------------------------------------------------------

2.  Check the Appropriate Box if a Member of a Group (See Instructions)

    (a).........................................................................

    (b).........................................................................

- --------------------------------------------------------------------------------
3.  SEC Use Only................................................................

- --------------------------------------------------------------------------------
4.  Citizenship or Place of Organization







    Switzerland
- --------------------------------------------------------------------------------

Number of       5.  Sole Voting Power            -0-
Shares Bene-
ficially Owned  6.  Shared Voting Power          6,487,740**
by Each
Reporting       7.  Sole Dispositive Power       -0-
Person With:
                8.  Shared Dispositive Power     6,487,740**
- --------------------------------------------------------------------------------

9.   Aggregate Amount Beneficially Owned by Each Reporting Person 6,487,740**

10.  Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
     Instructions).............

11.  Percent of Class Represented by Amount in Row (9)   6.3%
- --------------------------------------------------------------------------------

12.  Type of Reporting Person (See Instruction) OO
- --------------------------------------------------------------------------------


**  Neither the filing of this Schedule 13G nor any of its contents shall be
deemed to constitute an admission by Sagio Investments SA that it is the
beneficial owner of any of the Common Stock of Palm, Inc. referred to herein for
purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, or
for any other purpose, and such beneficial ownership is expressly disclaimed.


Item 1(a)   Name of Issuer:  Palm, Inc.

Item 1(b)  Address of Issuer's Principal Executive Offices: 950 W. Maude
Avenue, Sunnyvale, CA 94085.

Item 2(a)  Name of Person Filing: Sagio Investments SA

Item 2(b)  Address of Principal Business Officer or, if none, Residence: 11
Course De Rive, 1204 Geneva, Switzerland.

Item 2(c)  Citizenship: Switzerland

Item 2(d)  Title and class of Securities: Common Stock.

Item 2(e)  CUSIP Number: 696643105

Item 3. Type of Reporting Person: N/A. The Reporting Person is a Swiss entity
regulated by Swiss authorities, including the Association Romance des
Intermediaries Financiers, a self-regulating body, and subject to all Swiss laws
and regulations.

Item 4.  Ownership

     (a) Amount beneficially owned:  6,487,740**

     (b) Percent of Class:  6.3%

     (c) Number of shares as to which the person has:



          (i)   Sole power to vote or to direct the vote:  -0-

          (ii)  Shared power to vote or to direct the vote:  6,487,740**

          (iii) Sole power to dispose or to direct the disposition of:  -0-

          (iv)  Share power to dispose or to direct the disposition of:
                6,487,740**

Item 5.  Ownership of Five Percent or Less of a Class: If this statement is
being filed to report the fact that as of the date hereof the reporting person
has ceased to be the beneficial owner of more than five percent of the class of
securities, check the following [    ]

Item 6.  Ownership of More than Five Percent on Behalf of Another Person: The
Reporting Person manages the Titanium Fund, Longview Fund and Sniper Fund as
well as personal accounts for and on behalf of clients and investors located
outside the United States who have the right to receive or the power to direct
the receipt of dividends from, or the proceeds from the sale of, the securities
referenced herein.

Item 7.  Identification and Classification of the Subsidiary Which Acquired the
Security Being Reported on By the Parent Holding Company or Control Person: N/A

Item 8.   Identification and Classification of Members of the Group: N/A

Item 9.  Notice of Dissolution of Group: N/A

Item 10.  Certifications

By signing below I certify that, to the best of my knowledge and belief, the
securities referred to above were not acquired and are not held for the purpose
of or with the effect of changing or influencing the control of the Issuer of
the securities and were not acquired and are not held in connection with or as a
participant in any transaction having that purpose or effect.

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.



                                       Date: May 24, 2006

                                       SAGIO INVESTMENTS SA


                                       By: /s/ Gualtiero Giori
                                           ------------------------------------
                                                    Gualtiero Giori
                                           Administrateur and Investment Manager




                                                           FOR IMMEDIATE RELEASE



            SAGIO ASSET MANAGEMENT INCREASES OWNERSHIP OF PALM, INC.
        Internal report indicates PALM Misunderstood and Underestimated

BELLEVUE, WA-May 24, 2006-Sagio Asset Management announced today that earlier
this week it increased its ownership of PALM, Inc. (NASDAQ:PALM) from 5% to 6.3%
following the recent weakness in the stock. The investment manager will issue
its internal research report on PALM later today at http://www.sagioinvest.com.
The decision to increase its exposure to PALM was precipitated by the market's
trust on poorly informed sell-side research. While the weak markets have
certainly not helped over the past few weeks, it was yesterday's downgrade by
Bear Stearns coupled with the launch of Moto Q from Motorola (NYSE:MOT) that has
hit PALM the hardest. The analysts now attacking PALM are the same ones who
warned of soft May quarterly guidance prior to the February earnings call. It
may be instructive to recall that PALM beat consensus in February and then
guided above Street's expectations for May. Sagio Asset Management believes that
the same dynamic is at play here. PALM is once again being misunderstood and
underestimated.

With few notable exceptions, PALM has been consistently underestimated by the
sell-side over the past few years. Yesterday's report treated option expensing
without any attention to PALM's cash tax rate. Sagio believes that PALM's cash
flow expansion will significantly outpace EPS growth thanks to sizeable deferred
tax assets. As a result, Sagio would encourage management and the sell-side
community to focus on cash flow-based valuation metrics.

Sagio would be sorely disappointed if PALM's management did not offer clear FY07
guidance in the upcoming May '06 (4Q06) earnings report. Since management has
repeatedly ignored requests for a stock buyback on the basis of strategic
considerations and has not answered Mark Nelson's call for a sale of the
company, we firmly believe PALM's senior executives should share their view of
the future more explicitly than they have until now.

Sagio Asset Management has an expectation of 34% top-line growth in FY07 and
believes that management will have plenty of wiggle room if it guided for 20% to
25% top line growth. It believes that PALM is worth $30/share by the end of '06
on conservative shipment scenarios, with very reasonable outcomes supporting a
$50 stock price.

PALM'S GROWING PRODUCT LINE
Investors have been warned for over two years that PALM will succumb to
intensifying competition from Motorola, Nokia, and other large handset vendors.
Reality has been quite different from those warnings.

Since the introduction of the revolutionary Treo 600, PALM has unveiled three
completely new Treo platforms (i.e. 650, 700w, and 700p), running two different
OS platforms, supporting 3G speeds, and spanning all major geographies and air
interface standards. Later this year, PALM will unveil the Hollywood to target
Europe with a GSM-based 3G smartphone in an attractive, antenna-less, Windows
Mobile-powered package. PALM will also start selling the Low Rider to extend the






appeal of the Treo's brand, power, and ease-of-use to the mass market. By
contrast, NOK took until now to introduce the E61 messaging phone, and the MOTO
Q was delayed numerous times in its two-year saga.

254% RISE IN PALM'S SHARE PRICE SINCE '04
Despite continued warnings by pundits that PALM would be unable to compete
effectively, the period starting in Jan '04 has been one of unprecedented
improvement in PALM's financial performance and extraordinary returns for
shareholders.  In particular:

     1. Sales will have increased to over $405M in May '06 from $271M in
        November '03.

     2. Cash from operations improved to $76.1M in February '06 from a burn of
        $23.8M in November '03.

     3. PALM's share price has grown 254% to $18.11 yesterday from $5.12 in
        January '04.

Relative to yesterday's closing price, PALM trades at a valuation completely
disconnected from reality. Adjusting for PALM's $537m in cash and investments
and $60m in land-for-sale, PALM's FY07 P/E is just 6.2x (i.e. using cash
taxes/8.8x using GAAP taxes). PALM is trading at a significant discount to
peers. For instance, RIMM is trading at 19.5x the FY07 EPS consensus. Sagio
believes there is no logical justification for the wide divergence in
valuations, and we fully expect PALM's multiples to expand.

The recent drop in price (down 24.5% since the $24 peak on April 6) has created
a unique opportunity for investors. Sagio expects a string of positive catalysts
to boost the company's stock price through out the remainder of the year:

     1. Q4Y06 earnings call in June - Sagio believes that PALM will offer FY07
        top-line guidance ahead of the 16.3% growth consensus expectations.

     2. The launch of the Hollywood in CY3Q06 - this antenna-less, 3G,
        Windows-powered smartphone will allow PALM to significantly grow its
        unit shipments by finally offering a compelling European phone.

     3. The announcement of major European carrier partnerships - the launch of
        the Hollywood will be an event ala 700w at Verizon Wireless with
        Microsoft and PALM.  Sagio believes that Vodafone will become the
        Hollywood's first strategic carrier distributor.

     4. The launch of the Low Rider in CY3Q06/CY4Q06 - This launch will allow
        PALM to break into the mass-market with a price point around $200,
        reaching a broad swath of the consumer market, while squashing those
        critics who argue that price competition will lead PALM's downfall.

     5. Strong May, August, and November earning reports - Sagio believes that
        PALM will beat consensus estimates and guide above expectations for the
        August quarter. Moreover, success of the 700p at Sprint and Verizon,
        the launch of the Hollywood in Europe, and the introduction of a North
        American Hollywood in late '06 could add significant upside relative to
        current expectations.

PALM's strong start in '06 should only get better as new devices help PALM to
significantly expand volumes. Sagio believes that the 700p will be as, if not
more popular, than the 700w due to the superior LCD and the ease-of-use of the
PALM OS. As the Hollywood starts to move through the





carrier distribution network and the Low Rider breaks into the consumer mass
market, PALM's unit shipments could expand significantly above current levels.
Finally, Sagio expects ultra-thin Treos to appear in 2007, allowing PALM to
capture the fashion-conscious buyer.

Sagio believes that the expansion of PALM's product line will allow the company
to not only show very strong top-line growth but also enjoy expanding margins.
Sagio believes that PALM's revenues will grow between 30% and 34% in '07 and a
further 22% in '08, after growing 26% in '06. Operating margins should jump from
8.2% in FY06 to 11.3% in '07 and 13.1% in '08. Needless to say, Sagio believes
that a forward P/E of only 13x or less is unreasonable given our expectations
for PALM's growth profile.

Fundamental research is the driving force behind Sagio's investment process.
An updated internal research report available later today
http://www.sagioinvest.com is not intended to offer investment advice or to
recommend any shares. Sagio already owned 6.3% of the company as of the time of
this release. Sagio always strives to gain access to the best research.  As
such, we are taking a first step by sharing our work with the investment
community.

 ABOUT SAGIO:
Headquartered in Geneva (Switzerland), Sagio is an investment adviser
specialized in alternative investments. Sagio manages three funds (Sniper,
Longview and Titanium) and managed accounts for an international clientele. They
seek above average gains (both capital appreciation and current income) by
employing a value-oriented, "bottom up" approach to investing in event-driven
financial instruments perceived to be inefficiently priced as a result of
business, financial or legal uncertainties. Sagio's trading approach also
applies principles of cognitive and evolutionary psychology to financial market
behavior. It can be found at www.sagioinvest.com

DISCLAIMER
This material is solely for your information and use. It is not a solicitation
or an offer to buy or sell any security. The information is obtained from
sources believed to be reliable, but Sagio does not guarantee its accuracy or
completeness. The information, opinions or quotations may change without notice
and may be condensed or summarized and Sagio is under no obligation to ensure
that updates are brought to the attention of any recipient of this material.
Sagio, its affiliates and/ or their employees may have a position or holding, or
other material interest or effect transaction in any securities mentioned or
options thereon, or other investments related thereto. Sagio may be providing,
or have provided within the previous 12 months, significant advice or investment
services in relation to the investment concerned or a related investment to any
company or issuer mentioned. Some investments referred to in this information
will be offered by a single entity and, in the case of some investments, solely
by Sagio, or an associate of Sagio may be the only market maker in such
investments. The price and value of investments mentioned and any income which
might accrue may fluctuate and may fall or rise. Past performance is not
necessarily a guide to future performance. This information and any related
recommendations or strategies may not be suitable for you; it is recommended
that you consult an independent investment advisor if you are in any doubt about
any investments or investment services. While regard may have been had to
information available to Sagio as to your investment portfolio in the
preparation of this material, nothing in this material constitutes investment,
legal, accounting or tax advice, or a representation that any investment or
strategy is suitable or appropriate to your individual circumstances, or
otherwise constitutes a personal recommendation to you. Sagio does not advise on
the tax consequences and you are advised to contact an independent tax advisor.
In addition and without prejudice to the foregoing, to the extent to which this
information relates to packaged products for which a Sagio entity is a provider
firm that entity would in any event only be able to give advice on investments
to private customers about the packaged products of that entity or of its
marketing group and about adopted packaged products. If an investment is
denominated in a currency other than your base currency, changes in the rate of
exchange may have an adverse effect on value, price or income. The levels and
basis of taxation may also change from time to time. Additional information is,
subject to duties of confidentiality, available from Sagio upon request.

Press Contact:
Pablo A. Perez-Fernandez, Ph.D.
Director of Research
Sagio Investments
+1 (310) 928-3151 (H,W)
+1 (917) 881-4621 (M)
E-mail: pablo@sagioinvest.com