This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

RIM, Facebook Liven Week's Market

Stocks in this article: RIMM FB BTH

NEW YORK ( TheStreet) -- This past week is further proof that there is never a dull moment in the markets. While value investing may at times seem as exciting as watching paint dry, or grass grow; I'm never bored. There's plenty happening on the Street in any given week that holds my attention, or leaves me shaking my head in disbelief.

Yesterday, Research in Motion (RIMM), which had just about descended into net/net territory, reported a better than expected quarter, on both the revenue and earnings front, sending shares up nearly 20% in after-hours trading.

That's the thing about companies trading below net current asset value; it's often such a depressed valuation that any good or unexpected news is like rocket fuel for the stock price.

Based on new balance sheet data, and assuming yesterday's late-day share price rise, RIMM would trade at about 1.35 times net current asset value. Cash and short-term investments rose from $1.94 billion last quarter, to $2.065 billion.

The plot thickens for Research in Motion as the market declares that the company's presumed death may have been premature.

RIMM Chart RIMM data by YCharts

On to the ridiculous, in my view anyway. Thursday Facebook (FB - Get Report) announced functionality that will allow users to purchase gifts for friends. I don't know, maybe this will help with ad revenue, and put some bounce back in the company's step, but I certainly won't be participating.

I still do think that Facebook shares are over-priced, and can't justify the current $43 billion plus market cap. We'll see how the "gift" application strategy works; it would not be surprising to see a short-term bump in share price, but the jury remains out as to whether Facebook users will begin to use the site as an on-line retailer.

In one of the more interesting developments involving underfollowed small caps, shares of Blyth (BTH) Blyth (BTH) , which direct markets a plethora of home goods, gourmet foods, and nutritional products, has had a very rough week.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

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