Don't miss the chance on Trading (shorting) RIMM

Discussion in 'Stocks' started by hajimow, Jan 14, 2013.

  1. hajimow


    First read my post and do your own research on trading RIMM. I don't know the last couple of day's price action is short squeeze or what but I am not buying the news that RIMM will be successful after release of the latest OS. There is absolutley no way RIMM can make it. It reminds me of PALM smartphones. 6 years ago Blackberry was number 1 but I cannot give any number to it now. It is absolutely dead now. Iphone and Android phones are the the only two. Even Windows based smartphones are wasiting their time.
    My recommendation is that start shorting RIMM when you are comfortable but nibble into it. Don't jump into it at once.
    I believe even $10 is too much for this stock. You have to be patient . Short it and wait till this dust (new OS buzz) settles.
  2. So tell us, how many shares do you have short yourself?

    Remember the mumbling about how dire the prospects were for facebook investors. Has anything fundamentally changed since then?

    Nope, other than the stock price being up by 60%.

    RIMM may have no future, but the market doesn't have to reflect that anytime soon. Indeed, it could go much higher for quite a while longer and you can be part of the next short squeeze.
  3. hajimow


    2400 shares so far but I will increasing to my position gradually.
  4. hajimow


    The fact that RIMM has dropped from over $100 to $15 (which is considered high ) shows that the market is reflecting that fact. By the way, Rome was not built overnight.
  5. shfly


    Could Microsoft buy this POS? Since MS is around 5+ years late to the mobile market, and their own W8 phones is, and will be, very slow to gain share, if at all...

    Heck, why not buy NOK at the same time, and merge those two losers...;)

    Of course, MS would need a visionary leader...

    PS Am waiting for the new BB 10...longtime BB user...
  6. Just curious, are you still short or have you covered?

    I'm wondering how many shorters are still in the game. The squeeze on Friday should have finished off most of the weaker hands.

    Still, the stock should continue to appreciate leading up to the launch. I wouldn't short until after the release.
  7. I could be wrong about this but I do recall a guy on CNBC who commented on the RIMM short.

    Problem is, at like $10 ( or somewhere around there), the price of the stock is equal to all the assets that the company has. So even if you say, there is absolutely no equity in any of their business least the assets will be worth the stock price
  8. hajimow


    Based on YHOO finnce, RIMM has a little over $5 cash per share and they have lost over $1.6 per share last year (no income). For 2013, all analysts (over 30) predict that RIMM will lose money and even for 2014 the average earning is very negative. Many corporates in US have switched from BlackBerry to Iphone and Android. This trend is continuing and it will be shocking to imagine that the things will reverse.BlackBerry users in the world are mainly budget concious customers (mostly in developing countries) who cannot affort to pay premium for the new BlackBerry phone ad the reason that they are using BlackBerry is that the phones are sold very cheap at discount price. I believe RIMM is currently manipulated by big players as PALM used to be. I remember that some analysts had $60 target for PALM when PALM was bleeding to death in its last months. They do this to dump their shares. Now you can buy RIMM at the current price in the hope of selling it higher and there is nothing wrong with that. But if you are investing in it in the hape that there is a big turnaround for the company, your thinking is flawed.
  9. I don't disagree that there might be some opportunity for a RIMM short, I'm just pointing out that your timing is terrible.
  10. This was a pure crap-shoot with overall market being strong. Not because it's not working at present, but because it really had no ST edge. Greenlight Capital could afford to take the heat. But why load up with -0- calls [or puts] to hedge?
    #10     Jan 23, 2013