Friday RIM Stock Drop
What do the analysis know? NOTHING
Friday was just another dirty trick for RIM stock to drop.
Dont worry they made a lot of monday betting on RIM stock.
They don't know S@#$T.
There shouldn't be any after market trading be done.
- 12-22-2012, 06:41 PM #2
Settle down, dude.
RIM is trading basically on sentiment right now, so anything that disrupts positive sentiment does a lot of damage. Investors were concerned about the 1st-ever decline in subscriptions this quarter and possible changes in RIM's service income.
The only thing that will get them out of the "sentiment zone" will be a successful launch of BB10 and a return to profitability. Until then, yes, RIM stock will be volatile.
- CrackBerry Abuser
12-22-2012, 08:35 PM #3
- 384 Posts
I agree with Thunderbuck. RIM is not a short term play right now. I have invested in RIM and believe that in a years time my investment will have at least a 100% return. This fall in shareprice on Friday had a lot of factors to contribute.
1. The lack of information in regards to service fee structure change has investors worried.
2. Delisted off of the NASDAQ 100 composite means a lot of funds will have to sell based on their guidelines alone. (RIM is 60% institutionally owned)
3. Nokia and RIM reached an agreement on their patent dispute for an undisclosed amount.
The plus side is, the quarterly results were a lot better than the street was expecting. In afterhours, shares were as high as 15.50 I believe on the NASDAQ. In my opinion this is just a quick pullback that has been over exaggerated and RIM will be trading above $12 within the next week. Many analysts (not that anything that most of them have to say means diddily squat) have already come forth and agreed with this. Some have even raised their price targets for RIM (Goldman Sachs being one).
Anyway...what I'm trying to say is that RIM right now is a long term play. You can't sweat these small hiccups. In the grand scheme of things...RIM is still nearly 100% up from their year lows. Everyone thought RIM was done for but now there is a reason why it is trading above $10. IF (capitals intended) BB10 is a success...RIM will be trading at a multiple of the current share price. I personally believe it will be a hit. Even if it isn't, I think it will be enough of a hit to keep it a profitable company...so as far as being a shareholder goes, I would sleep easy with the long term picture in mind.
As always, do your own due diligence. These are just my opinions and I may be completely wrong (I have been before!).
Good luck to all!
12-22-2012, 08:53 PM #4
- 870 Posts
I am invested and yes the drop sucks but nothing goes straight up and the drop was very much over done as Goldman pointed out and even raised their target to $17 from $16. A few other banks raised their targets on friday
TD $13 FROM $12.00
BMO $12 FROM $ 8.00
SCOTIA $18.60 FROM $16.80
PARAGDIGM RESEARCH $ 14.50 FROM $14.00
- 12-23-2012, 09:19 AM #7
An officer of the company gave a terrible answer to a question, and it hasn't been clarified.
So the stock dropped.
"Asked how service fees paid by consumers and businesses will change with the coming BlackBerry 10 platform, RIM (US:RIMM) Vice President Paul Carpino essentially said it’s unclear. “We just aren’t providing the detail on it at this time. ... You’ll have to wait,” he added."
You don't give non answers in a results meeting. It is extremely weak and uncertain.
It isn't market manipulation or short selling or ranting about how analysts are stupid. It was a terrible answer by a RIM executive. Not that they haven't done that before. But after a very nice run up on the stop (based on presumptions, assumptions and rumors about BB10) a pull back was inevitable.
Just hang tight.
Last edited by njblackberry; 12-23-2012 at 10:26 AM.
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