RIMM Disappoints

Wednesday, June 25, 2008

RIMM, one of the few bright spots in the current market, disappointed Wall Street after the close today. RIMM is the only stock of 2007's "four horsemen" (Research in Motion, Apple, Google and Amazon) that has recently been trading anywhere near its all-time highs. RIMM actually just put in a new all-time high a few days ago before pulling back.

Apple currently sits 12.6% off its all-time highs, Google 26.3% and Amazon 20.4%. So, RIMM has been the last of our 2007 leaders still holding up in this declining market. Today's after-the-close earnings announcement was anything but spectacular. RIMM promptly shed 8% falling back to previous support levels.

Tomorrow should be interesting. Will Wall Street change its mind or will we have lost our last 2007 leader? $128 is a very strong technical support level and must hold if RIMM is to hang in there. A break of $128 could lead to significantly lower prices over the next few months.


Post a Comment