Rimm stock dumping to $60.

mustangv8 · Thread Author #1 10-28-2009, 09:03 PM

Never thought rimm would drop to the high 60 and change point. I thought 65 would have been a floor as it was sitting quite nicely above it, but the stock broke right through on this bad two day selloff. I am not currently an owner, but was seriously looking to add a small long position a few days back. Not really glad for the drop, because now I have no idea how low we can go and we could see high 50's this week if the market decline continues? I know guidance was soft, just like with what aapl alwyas does. But from 86 to 61 in a month? And an estimated forwars p/e of less than 20 with the potential growth of rimm?
This may be a very good value play for the future, but if looking long, I would highly suggest buying in small increments and averaging down on rimm.

At least the execs are taking a bit of the heat for this defective storm they were selling and the continued srop in stock pps. I feel bad for the longs who are sitting on a big loss, I am also, just in other companies.

Archangel00195 · #2 10-28-2009, 10:00 PM

Thank god...maybe they will step it up..

tghockey07 · #3 10-28-2009, 10:06 PM

Quote:

Originally Posted by Archangel00195

Thank god...maybe they will step it up..

doubt it.

Posted from my CrackBerry at wapforums.crackberry.com

Posted from my CrackBerry at wapforums.crackberry.com

chuckz28 · #4 10-29-2009, 12:13 AM

I think RIM is going to continue to get dragged down. I don't think they will make their mark because A.) With the economy continuing to stay at its current level and no further growth coming for at least a year, businesses will likely cut budgets by not upgrading handsets. Along with this you have many other cellular manufacturers doing a good job to chip away at RIM's market share for BES by offering alternatives for cheaper anyway. B.) They are not even going to come close in the consumer market this time. With the new devices coming out without advertising and major upgrades, and many android devices hitting the market in the very near future, RIM will not make the sales they expect for consumer devices. BOGO is their only savior.
So from what I can see both the business and consumer ends are both not looking good. Couple this with a company that is already as saturated as it is, even though the consumer end has room for plenty of growth they have been really doing a poor job and taking their time, the stock will continue to trend downward. Now I haven't had a chance to look at their balance sheets or anything as I have been out of the game for a while but I think the RIM legacy is over. Google has a much higher chance for growth. I would stay away from RIM with a 10 foot pole for a while enough for the shareholders to put complain enough that they get back on track and really dive head first into the consumer market. Once they get beat down, and shareholders complain then they will have to plan how they will fix their ways, hire the correct people to implement them ( or it will be a failure) then actually work on it. Knowing RIM's pace, I think it will take at least a year and a half or 2 before they can be profitable again and put out a product that the consumer really craves. During this time they must figure out what they can do to retain their BES cash hog too.