Wednesday, February 11, 2009

RIM Stock Takes a Huge Hit

RIM Stock prices are currently down around 10+% in early morning trading. RIM has stated that their earnings coming out for this quarter will probably be in the low range of guidance.

I'd like to do more homework on this subject before I comment further, but I'm a little skeptical about how dramatic the drop in stock price is. A momentum change after such a positive increase in the last few months wouldn't be unheard of, but I don't think the dramatic decline we are seeing is necessarily warranted. I think with the new numbers, a good price target is closer to $70 versus $75, but certainly not less than $65.

It might be a good time to get back into the stock if it passed you by the first time. Or let the panic drop the price a bit more and put in a low standing buy price.

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