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TheStreet Open House

All That Excitement Over BlackBerry 10 Was Really Dumb

Stocks in this article: RIMMFBNFLXAMZNAAPLDELLRSHBBY

So people buy these types of stocks on some whiff of false optimism. With Dell and Best Buy, you get long for no other reason than playing the prospects of a buyout. Same with Radio Shack, plus when such a well-known name gets that "cheap," people feel compelled to act on the it can't go much lower impulse. All awful reasons to make an investment, even if you're just taking the shares for a quick ride.

RIM's run was all about BlackBerry 10-related hype. We see the phones. They're not horrible -- BlackBerries, even after the brand fell behind, became uncool and imploded, never are. But they're certainly nothing to write home about.

For now, all RIM has to show for all of the hype and 50% worth of upside (not only about 10%) is another iPhone knockoff and a name change that came at least 2 to 3 years too late.

The flippers probably got out of this thing before the BB10 event even happened. Unless you decide to close the trade for a much smaller profit than you had a couple of days ago -- assuming you got in early to still have a profit -- I have to wonder about your sanity. RIMM is not a value play. Never was. Isn't now. Probably never will be.

The same logic that keeps AAPL down propped RIMM up.

The market sold AAPL off a year too soon because although we have no real evidence as of yet to support the notion, we think Apple lost its mojo. Just the opposite with RIMM: We have no evidence to support our optimism, but, hey, what the hell, let's bid this carcass up.

That's how it went down. RIM finally has a new phone to sell. They're actually going to make an announcement about it. Buy the stock. Nothing changed. There's no real promise that anything ever will change, but the freak stock doubles as AAPL crashes $250. Wow.

Does the chicken or the egg come first in this type of situation?

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