Research In Motion (RIMM)
Background: Research In Motion is a world leader in the mobile communications market and has a history of developing breakthrough wireless solutions. RIM trades an average of 17.6 million shares per day with a market cap of $3.8 billion. It reports second-quarter earnings Thursday.l
52-Week Range: $6.33 - $24.74Book Value: $18.61 RIM investors have been beaten up so badly the last four years they may qualify for handicap parking. RIM is a classic example of what happens when investors believe really smart CEOs are actually smarter than they are. Having the skill set of taking a technology company from zero to the world stage is a different skill set than running a large tech company. (Hello, Facebook (FB) investors.) Investors aren't expecting an improvement in RIM earnings. Analysts forecast per share results below last year in the same quarter. The earnings release is planned after the market closes on Thursday. The consensus estimate is a loss of 46 cents a share, falling $1.26 from a gain of 80 cents during the same period in the previous year. Last quarter RIMM's earnings release was held on June 28, and the previous closing price was $9.13. Relative to a current price of $6.91, shares are down 24.3%. Technically, the monthly chart is oversold, and I am expecting a bounce higher. The weekly chart is slightly oversold, as is the daily. I would not want to remain short into earnings. Earnings may not turn into the catalyst for the bounce, but it certainly could turn into one. The short interest is anything, but short. The current float short is 18.7%.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV