This Day On The Street
Continue to site
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

Dear RIM: Wall Street Doesn't Date Losers

The idea that RIM can just stroll into the office several years late with BlackBerry 10 and pick up where it left off is absurd. You have a better chance getting an NHL season in and a new franchise in Waterloo than of having a successful enough launch to salvage things.

When RIMM stopped being an obvious short, it became nothing more than -- using Doug Kass's words -- "a trading sardine."

If you caught the double on this thing, you weren't good or smart, you were lucky. You played with fire and you didn't get burned. Try doing that as a strategy -- buying dogs and calling them value plays -- and you'll lose your bum on some of the greatest sucker stocks of years' past.

The opposite of RIMM -- AMZN.

The market reacts however it reacts to an Amazon earnings report. Up initially. Down initially. It really doesn't matter. If you buy just a few shares of this stock, from time to time, on the dips, you -- at least historically -- have become wealthier for your troubles.

Why? Why does this happen to AMZN?

Because there's very little uncertainty. Yes. Very little uncertainty. The bears, who do not have the guts to short AMZN, make you think the sky is falling in Seattle. It's not, man.

I put that lame act to rest Thursday in Absolutely Devastating News For Amazon?

When Amazon says we're going to lose money -- or some Wall Street analyst hack reduces Kindle Fire sales estimates -- investors do not worry. They support the stock at some relatively modest low. And then they bid it back up, irrespective of what that meaningless price-to-earnings ratio says.

If you have to ask what the P/E is before you buy a stock, you shouldn't be investing. That's right. Those days are long gone, particularly when it comes to names such as Amazon with class A management and a rapid cycle of reinvestment aimed at massive long-term opportunity. If you use the P/E for anything, consider it a gauge of investor confidence that management will execute, keep on delivering revenue and end up long-haul profitable.

It should come as no surprise that AMZN rises on "uncertainty" and RIMM tanks on false optimism. Even though they do not report back-to-back, the two companies provide an instructive comparison case for investors.

--Written by Rocco Pendola in Santa Monica, Calif.
Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMZN $659.59 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs