August 31, 2010 | In: Technology
RIMM Is Being Butchered on High Volume
One day after I’ve written about RIM’s arrogance, RIMM has plunged 4% to over a 4 year low of $43.42 (the stock will probably close below $43) on high volume (the volume by the end of the day will probably be about 24 million), which is an indication that some investors are jumping ship. RIMM’s decline even weighed heavily on the NASDAQ and curbed its gains, in what was going to be a good day.
RIMM’s uncertainty in emerging economies is putting a lot of pressure on the stock. Although I hate RIMM on the long run, I do think that the stock is currently way undervalued (I already expressed that I thought it was undervalued at $46.50), but I do believe that there will be a better entry point by the end of the day to buy the stock. RIMM’s lowest support level was $47.43, and it was broken two days ago. The stock is currently in a free fall.
If I want to buy the stock I’d wait for a pullback below $40 to buy, or a sign that the stock has stopped the downtrend (moving up on volume).
RIMM has fallen another 14 cents while I was writing this article, and is currently trading at $43.29, make that $43.28!
3 Responses to RIMM Is Being Butchered on High Volume
What If People Lose Interest in Facebook? « Fadi El-Eter
July 6th, 2011 at 3:28 pm
[…] and potential of the company (if you have doubts about this, just take a look on how investors are treating RIM despite its current […]
Jona
April 14th, 2012 at 3:54 pm
So your article was written on 08/31/2010. I am reading this today 04/14/2012, and RIMM is trading at $12.89. I think there was a “pullback” …. stocks and trading never cease to amaze me and the required gambling involved.
Fadi El-Eter
April 16th, 2012 at 7:28 pm
Hi Jona,
You should check my subsequent posts on RIM. I think that RIM currently has zero value to offer to its users, and consequently zero value to offer to its investors. The recent executive shakeups support my theory.