This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

RIM With a View

In the end, it was the sky-high expectations that did Research In Motion (RIMM) in.

The maker of the BlackBerry phones posted lighter-than-expected fourth-quarter results Wednesday and said it is now the target of a formal investigation by the Securities and Exchange Commission over its stock option grant practices.

Also, the company's guidance was cautiously optimistic.

RIM's stock took a hit on the news. On Thursday, disappointed investors sent shares of the company down $11.10, or 7.6%, to $134.97.

The expectations were too much for RIM to handle, says Matt Kelmon, portfolio manager with Kelmoore Investment Company, which has a position in RIM.

"We saw more than a 20-point rise in the stock from mid-March, and unless there was some absolutely fantastic news and huge, huge earnings, RIM's rise would be unsustainable," he says.

For the fourth quarter, revenue jumped 66% to $930.4 million from $561.2 million a year earlier. The company posted earnings of 99 cents a share.

Analysts were looking for earnings of $1 a share on revenue of $935.4 million.

"Still, a 66% rise in sales is absolutely fantastic, and their subscriber numbers remain strong but the numbers were lighter than what analysts had been looking for," says Kelmon. "So it's about whether you want to view the glass as half full or empty."

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,078.36 -1.21 -0.01%
S&P 500 2,001.32 +4.58 0.23%
NASDAQ 4,574.4670 +16.7720 0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs