RIM Investors: 'Enough!'

Though the resumption of the patent dispute between Research In Motion (RIMM Quote) and holding company NTP was bad news for the company's stock, things could really get worse.

The revival of the case on Thursday reopens the possibility that a court could permanently bar RIM from selling its BlackBerry wireless service and devices in the U.S., RIM's biggest market. Resolution may be far off, but in the nearer term there are signs that investors are losing patience with the former highflier.

One buy-side analyst, who asked not to be named, says his firm sold its long position in RIM in the wake of Thursday's news. The patent dispute has become a "circus," the analyst says.

"Right now, you just don't know what their risk is," the analyst says. "At the end of the day, there are other places to focus my time for now."

The analyst's firm wasn't the only one bailing out on RIM. The company's stock closed regular trading off $3.89, or 5%, to $73.55 for the day and traded off as much as 7% earlier in the session.

The shares' roller-coaster ride since December, when an appeals court issued a ruling in the patent dispute that was largely unfavorable to RIM, may evidence investors' waning patience.

In addition, some long-time RIM bulls recently sold their stakes in the company. Scott Rothbort, for instance, president of LakeView Asset Management and a contributor to TheStreet.com's sister Web site Street Insight, unloaded his shares on Tuesday after RIMM "looked weak."

"I wanted to take down some of my risk. I was tired of the gyrations in the stock," says Rothbort.

Dog Tired of It

Even though the stock is now trading at its lowest point in about a month, Rothbort says he likely wouldn't get back into it anytime soon.